Bank Indonesia (BI) Governor Perry Warjiyo said the world now faces the threat of reflation.
Reflation is a term for the risk of a recession occurring in a number of countries accompanied by high inflation.
Basically, reflation is slowing or negative economic growth accompanied by high inflation.
In addition, the high rate of inflation has also forced central banks in several countries to raise their benchmark interest rates, and even high-interest rates are predicted to continue.
Nonetheless, major interest rate increases should ease again in the second half of 2023.
"We estimate that it will increase again from 4.5 percent to five percent. There are others who estimate 5.25 percent and the peak will be in the first and second quarters of 2023," Perry said in an official statement, Sunday (15/1).
Created & published by jpnn.com on January 15, 2023, edited by Aurora Team.
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