Politicians, the Economy Needs to Survive

The grim mood blanketing the world economy grows thicker. An increasingly uncertain trade war is not only hurting China. The US economy is also showing signs of weakening. If two of the world’s largest economies are feeling the pain, many other countries will certainly feel it too.

Tempo

July 30, 2019

 

Central banks again must prepare to become the white knights of their own economies by giving out incentives. And with few other alternatives, they must once again rely on old trick that might no longer work effectively: interest rate cuts.

Bank Indonesia (BI) also takes that step. It has lowered its benchmark interest rate, the BI 7-Day Repo Rate, by 25 basis points to 5.75 percent. The expectation is still high that a rate cut will fin

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