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BI anticipates impact of slower UK growth after Brexit
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Bank Indonesia senior deputy governor Mirza Adityaswara speaks to journalists at his office in Jakarta on Tuesday. (The Jakarta Post/Sepsha Dewi R.)
B
ank Indonesia (BI) has predicted that the UK’s economic growth will be slower in the next few years after Britain voted to exit the EU.
Therefore, the central bank would anticipate the effect on Indonesia’s economy in the future said BI senior deputy governor Mirza Adityaswara on Tuesday in Jakarta.
“What happened in the UK lately with Brexit will not necessarily have a bad impact on emerging markets like Indonesia, but we should keep monitoring any possibility happening in the future,” he said.
Indonesia, he further said must remain vigilant for the possibility of another referendum in the bloc that may affect the EU’s economy, which will ultimately affect Asian exports to the region.
Thus far, Brexit had triggered financial turmoil in money markets around the world as investors hurdled to the safe havens of the US and Japan, and thus squeezing the rupiah’s value against the US dollar.
British citizens voted 51.9 percent to 48.1 percent, from a 70-percent turnout of eligible voters on Thursday in favor of ending its membership of the EU. The market remains anxious, fearing Brexit would inspire other EU members to leave the bloc. (sha/ags)
