Bank Indonesia May Cut Rates for Fourth Straight Month

Bank Indonesia May Cut Rates for Fourth Straight Month

Assessment

Interactive Video

Business

University

Hard

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The video discusses the economic situation in Indonesia, focusing on the expectations of further rate cuts despite previous ones. Deputy Governor Dody Budi Waluyo highlights domestic and global risks, suggesting room for more accommodative policies. The economy has been stagnant at around 4-5% growth since 2014, with IMF projections slightly lower than expected. The current account gap has narrowed, supporting potential rate cuts. However, exports have been declining for 10 months, posing a significant external risk. The video emphasizes the need to address export challenges to stabilize the economy.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of the trade surplus turning into a trade deficit?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What strategy does the text suggest to address the export risk?

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