Indonesia to Keep Tight Stance as Rupiah Weakens
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Indonesia’s rupiah is “undervalued” after weakening to a four-year low and the central bank will keep its policy stance tight to restore investor confidence, Senior Deputy Governor Mirza Adityaswara said.
Bank Indonesia may use policy tools including interest rates and reserve requirement ratios to curb inflation and shrink the current-account deficit to below 3 percent of gross domestic product in 2014, he said in Jakarta yesterday. The current account has been in deficit for eight quarters and was at 3.8 percent of GDP in the July-September period.