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Indonesia Can’t Use Rate Cuts for Growth, Central Bank Says

Indonesian President Joko Widodo takes a post-election tour of his nation's ports.

Indonesian President Joko Widodo takes a post-election tour of his nation's ports.

Photographer: Ian Teh/Bloomberg Markets
Herdaru Purnomo and Yudith Ho
Updated on

Indonesia’s central bank isn’t in a position to use interest rates to spur growth as cutting them would hurt the currency, Senior Deputy Governor Mirza Adityaswara said a day before a policy decision.

“It’s not easy to adjust monetary policy now,” Adityaswara told reporters in Jakarta on Wednesday. “So we will address it by using macro-prudential instruments to support growth.”