Indonesia Signals End of Hikes as Fed Peak Rate Comes to View
- Oil-price impact to Indonesia seen as risk by Governor Warjiyo
- 225 basis point hikes to 5.75% key rate ‘sufficient,’ he says
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Bank Indonesia has delivered enough interest-rate increases, according to Governor Perry Warjiyo, who signaled that this round of tightening is coming to an end as the Federal Reserve also winds down.
The Fed rate will likely peak at 5.25%, with a chance of easing to 5% by the end of this year as US inflation cools, Warjiyo told Bloomberg Television’s Haslinda Amin on Thursday. The outlook on the Fed’s terminal rate is “much more certain now” compared to last year when market bets reached as high as 6%, he said.