Bank Indonesia's New Governor Stamps His Mark With Rate Hike
- Almost all economists in survey forecast 25 basis-point hike
- New governor pledges to be pre-emptive on monetary policy
Photographer: Graham Crouch/Bloomberg
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Indonesia’s new central bank chief raised interest rates at an early policy meeting on Wednesday, moving swiftly to counter an emerging-market selloff that’s shaken the nation’s currency and bonds.
Less than a week in office, Governor Perry Warjiyo led the board in increasing the seven-day reverse repurchase rate by 25 basis points to 4.75 percent, in line with almost all of the forecasts from 26 economists surveyed by Bloomberg. He flagged further rate increases, depending on how domestic and global developments play out and how aggressive the Federal Reserve is in tightening policy.