Central Banks
Smaller Rate Hikes in Play as Indonesia Turns Eye to Growth
- Indonesia is poised to become a $1.3 trillion economy in 2023
- Bank Indonesia pivots to a less aggressive rate increase
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Indonesia’s central bank slowed the pace of its monetary tightening Thursday, in a move seen to support growth as inflationary pressures ease.
Bank Indonesia opted to raise the key rate by a quarter-point to 5.5% on Thursday, marking a shift to “more measured” moves after three successive half-point actions to tame inflation. As the outlook for the global economy deteriorates in 2023, Governor Perry Warjiyo wants to ensure ample liquidity to boost spending and borrowing.