Releasing the head without holding the tail
The limited room for a policy rate cut does not dampen the spirit of Bank Indonesia (BI) to loosen its monetary policy.
The central bank’s board of governors’ meeting in the middle of January opened the 2018 sheet by relaxing some macro prudential policies.
First, BI refined the primary reserve requirement (RR). The RR in rupiah for commercial banks that had originally been set a...
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