At an event in Jakarta, Indonesia, the president of the Central Bank expressed concerns about inflation being above the target range. He mentioned that the indicator is currently in a process of reduction, which could potentially address the issue. Economists predict that a cut in gasoline prices could cause inflation to fall below the upper limit by 2025.
Following the Central Bank’s decision to maintain interest rates at 15%, the number 2 official at the Treasury expressed concerns about the ‘dose of the medicine.’ This statement reflects worries about the potential side effects of the current economic measures being taken.
Galipolo also mentioned during the event that, in a global context, managing inflation is a challenging task. The fluctuations in prices and macroeconomic indicators can have significant implications for both domestic and international markets.
The Central Bank’s strategies and decisions play a crucial role in steering the economy towards stability and growth. Galipolo emphasized the importance of carefully monitoring various economic indicators to ensure that the country’s financial system remains resilient and adaptable to changing circumstances.
In his address, Galipolo highlighted the need for a balanced approach to monetary policy that considers both short-term concerns and long-term objectives. The Central Bank aims to strike a delicate balance between addressing immediate challenges and laying the foundation for sustainable economic development.
Overall, Galipolo’s remarks underscore the significance of maintaining a vigilant stance towards inflation management. The Central Bank remains committed to fostering a conducive environment for economic prosperity while staying attentive to potential risks and uncertainties.
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