The Response of Bank of Indonesia’s Interest Rates to the Prices of World Crude Oil and Foreign Interest Rates

The Response of Bank of Indonesia’s Interest Rates to the Prices of World Crude Oil and Foreign Interest Rates

This research aimed to investigate the response of interest rates set by Bank of Indonesia to the prices of world crude oil and foreign interest rates. It analyzed monthly data which spanned from July 2005 to October 2015. The tool of analysis used was the difference equation model. Result of the te...

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Bibliographic Details
Main Author: Pasrun Adam
Format: Article
Language:English
Published: EconJournals 2016-06-01
Series:International Journal of Energy Economics and Policy
Subjects:
world crude oil price
foreign interest rates
domestic interest rates
difference equation model
Online Access:https://dergipark.org.tr/tr/pub/ijeeep/issue/31917/351081?publisher=http-www-cag-edu-tr-ilhan-ozturk
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spelling doaj-ebcf015d14c3430d8bd6a1a12498d8ed2020-11-25T03:47:52ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532016-06-01622662721032The Response of Bank of Indonesia’s Interest Rates to the Prices of World Crude Oil and Foreign Interest RatesPasrun AdamThis research aimed to investigate the response of interest rates set by Bank of Indonesia to the prices of world crude oil and foreign interest rates. It analyzed monthly data which spanned from July 2005 to October 2015. The tool of analysis used was the difference equation model. Result of the test showed that there was a positive response of the interest rate determined by Bank of Indonesia to the price of world crude oil and foreign interest rates. The interest rates maintained by Bank of Indonesia increased (decreased) by 0.135% in response to each 1% increase (decrease) in the price of world crude oil. The interest rates also increased (decreased) by 0.081% in response to each 1% increase (decrease) in foreign interest rateshttps://dergipark.org.tr/tr/pub/ijeeep/issue/31917/351081?publisher=http-www-cag-edu-tr-ilhan-ozturkworld crude oil price foreign interest rates domestic interest rates difference equation model
collection DOAJ
language English
format Article
sources DOAJ
author Pasrun Adam
spellingShingle Pasrun Adam
The Response of Bank of Indonesia’s Interest Rates to the Prices of World Crude Oil and Foreign Interest Rates
International Journal of Energy Economics and Policy
world crude oil price
foreign interest rates
domestic interest rates
difference equation model
author_facet Pasrun Adam
author_sort Pasrun Adam
title The Response of Bank of Indonesia’s Interest Rates to the Prices of World Crude Oil and Foreign Interest Rates
title_short The Response of Bank of Indonesia’s Interest Rates to the Prices of World Crude Oil and Foreign Interest Rates
title_full The Response of Bank of Indonesia’s Interest Rates to the Prices of World Crude Oil and Foreign Interest Rates
title_fullStr The Response of Bank of Indonesia’s Interest Rates to the Prices of World Crude Oil and Foreign Interest Rates
title_full_unstemmed The Response of Bank of Indonesia’s Interest Rates to the Prices of World Crude Oil and Foreign Interest Rates
title_sort response of bank of indonesia’s interest rates to the prices of world crude oil and foreign interest rates
publisher EconJournals
series International Journal of Energy Economics and Policy
issn 2146-4553
publishDate 2016-06-01
description This research aimed to investigate the response of interest rates set by Bank of Indonesia to the prices of world crude oil and foreign interest rates. It analyzed monthly data which spanned from July 2005 to October 2015. The tool of analysis used was the difference equation model. Result of the test showed that there was a positive response of the interest rate determined by Bank of Indonesia to the price of world crude oil and foreign interest rates. The interest rates maintained by Bank of Indonesia increased (decreased) by 0.135% in response to each 1% increase (decrease) in the price of world crude oil. The interest rates also increased (decreased) by 0.081% in response to each 1% increase (decrease) in foreign interest rates
topic world crude oil price
foreign interest rates
domestic interest rates
difference equation model
url https://dergipark.org.tr/tr/pub/ijeeep/issue/31917/351081?publisher=http-www-cag-edu-tr-ilhan-ozturk
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AT pasrunadam responseofbankofindonesiasinterestratestothepricesofworldcrudeoilandforeigninterestrates
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