Saturday, 16 October 2021

Policy stance to stay tight, says Indonesia central bank deputy

JAKARTA: Indonesia’s central will maintain a tight monetary stance as it focuses on the stability of the domestic economy amid global uncertainties, a deputy governor said on Friday.

“Our focus is still on stability, so the monetary policy remains tight,” said Dody Budi Waluyo, Bank Indonesia (BI) deputy governor in charge of monetary policy.

Waluyo said investors’ sentiment toward Indonesia is “quite positive” despite concerns about Europe’s outlook and pressures in Argentina and Turkey.

BI hiked its benchmark rate six times last year, by a total of 175 basis points. With the Federal Reserve now expecting no U.S. rate hike this year, some economists hope BI’s next change will be a rate cut.

Waluyo said he believes the rupiah is undervalued.

At 0650 GMT Friday, the rupiah was trading at around 14,225 against the dollar, down about 0.4 percent this week.

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