What action do you think bank indonesia should take with

Assignment Help Financial Accounting

Reference no: EM133378925

Question: Listen Read the scenario below and answer the questions posed in well composed, thoughtful paragraphs. Ensure that you integrate course material into your response and take time to edit your work for clarity. Some economists have predicted that Indonesia will have the 4th largest economy in the world by 2030, As a result many in the financial press have begun to take a closer look at the country, and the management of the economy by Bank Indonesia (the cofintry's central bank). Bank Indonesia has an inflation target of 2-4 percent. Last month Bank Indonesia reported that core inflation was 3.27%. The inflation picture across the country is inconsistent. Some cities have reported inflation of 7.78% whereas other parts of the county have experienced more mild rates of 3.23%. Much of the in country price increases are the result of higher transportation (oil) and food import costs, resulting in headline the consumer price index (CPI) growth of 5.28%.

1. What action do you think Bank Indonesia should take with regard to interest rates? Why is this the case?

2. Given that much of the price growth is due to import costs, what action could Bank Indonesia take in the FX market to affect the value of the Indonesian Rupiah. The Rupiah currently trades at 1 CAD = 11365 IDR. hp

Reference no: EM133378925

Questions Cloud

Justification of the strategy : Prepare a memo to the COO briefly explaining the strategy along with the justification of the strategy.

What amount will its total costs change : If Fornelli, Inc. can purchase the units externally for €40,000, by what amount will its total costs change?

Discuss the three conditions investors expect to make : Discuss the three conditions investors expect to make an optimal investment decision and if these conditions are always achievable.

How similar early civilizations were across the planet : Thanks for this post Lizbeth! Isn't it interesting to recognize just how similar early civilizations were across the planet?

What action do you think bank indonesia should take with : What action do you think Bank Indonesia should take with regard to interest rates? Why is this the case? Given that much of the price growth is due

Corruption and bribery are common in some countries : Corruption and bribery are common in some countries. Would you avoid locating in such a country, or locate there and deal with it?

Perform a detailed analysis of ubisofts cash flows : Perform a detailed analysis of Ubisoft's cash flows for the year ended March 31, 2022 and a summary analysis of Ubisoft's cash flows for the five years ended

Contract warehousing : Contract Warehousing You are the owner of a blue Jeans company that occupies a warehouse to store and fulfill your retail stores, and on-line orders.

What is an experience rating program : An employer has $725,000 in assessable payroll and a premium rate of $3.33 per $100 of assessable payroll. What is their annual workers' compensation premium

User Account

All Pages