Economics

Inflation May Spur Indonesia Policy Rate Change As Soon As July

WATCH: Bank Indonesia Governor Perry Warjiyo discusses his outlook for the Fed as well as factors for adjusting the Indonesian central bank’s policy.Source: Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Grace Sihombing

February 19, 2022 at 3:45 AM UTC

This article is for subscribers only.

Indonesia’s central bank may need to adjust policy rates in the third or fourth quarter of this year as it braces for inflation to potentially exceed its target band in 2023, the governor said.

Bank Indonesia will keep its seven-day reverse repurchase rate at a record-low 3.5% until there are early signs of “fundamental inflation pressure,” Governor Perry Warjiyo said at a Saturday side event of the Group of 20 meeting.