Dian Kusumo
IDXChannel – Bank of Indonesia predicted that uncertainty in the world economy will continue until the first quarter of 2023.
BI will also take a number of steps to make decisions in the current uncertain conditions. Bank of Indonesia predicted global economic uncertainty will occur until the first quarter of 2023. Later it will start to subside but it will not really mean all sector will start to improve.
World economic uncertainty caused by a number of phenomena including the decline in global economic growth political tensions the risk of recession being faced by United States and Europe high inflation strengthen of dollar and investors are moving funds from emerging markets to liquid assets.
“Thus policy making, there are 3 steps under certainty. The first is to measure the uncertainty and measure the probability of its occurrence, in this case if the uncertainty is 75 percent and above, we will use the baseline scenario and based on that we will make a policy. But we also measure uncertainty with a probability level of between 50 percent and 70 percent, and we create a scenario that we often call upward risk. so that we can be prepared if the baseline scenario leads to upward risk, of course we already know the response, of course we are aware of the probability level of uncertainty below 50 percent, but of course we have to look back from the future,” he said.
"Watch our show IDX Channel Official Youtube on the Market Headlines Program, Wednesday (7/12/2022) with the theme BI: Uncertainly Will Continue until Q1 2023.
(DKH)
