Indonesia Wins Backing From IMF for Response to Market Rout
- IMF sees policy steps from Bank Indonesia as appropriate
- Investment board chief says focus must be on fundamentals
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The International Monetary Fund backed Indonesia’s response to a selloff in its currency, saying higher interest rates and foreign-exchange intervention were appropriate steps to help lessen the volatility.
Authorities can’t get too comfortable though, and should continue to reduce the risks that make the economy vulnerable to foreign outflows, according to Luis Breuer, the IMF’s division chief for Indonesia.