YEAR 2020 started with heightened inflationary pressures but stronger rupiah. Monthly inflation hiked to 0.39% in Jan. largely was due to the substantial increase in food prices as the impact of rainy season and floods. Rupiah continued on an appreciation trend in Jan., but it weakened in end of month especially due to the markets’ jitter on the outbreak of Coronavirus. The value of US dollar was fairly stable worldwide. Bank Indonesia maintained BI Rate at 5% in Jan. Therate is considered still attractive for luring investment in domestic financial markets. Combined with macroprudential policy, it is also accommodative for lower rates bank lending to support economic growth.

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