Abstract
The aim of this research is to prove the influence of inflation, crude oil price and Fed Fund Rate to BI Rate. The data are monthly time series from 2010:01-2016:06. The data are collected from Bank Indonesia, Indonesia Ministry of Energy and Mineral Resources and Federal Reserve Bank of St. Louis. Methodology of this research used Error Correction Model (ECM). The result show that simultaneous test (F-test) indicating that inflation, crude oil price and Fed Fund Rate have significant effect on BI Rate simultaneously. Partial test (t-test) indicating that inflation have significant and positive effect on BI Rate, while crude oil price and Fed Fund Rate have significant and negative effect on BI Rate in long term. While in the short term indicating that Fed Fund Rate have significant and negative effect on BI Rate. Inflation and crude oil price have insignificant effect on BI Rate in the short term.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
