Bank Indonesia’s Damyanti: Central bank to keep interest rates low until early signs of rising inflation

Anil Panchal FXStreet

Indonesia's central bank repeated a pledge to keep interest rates low until there are signs of rising price pressures to support economic recovery,” said Destry Damayanti, Bank Indonesia (BI) Senior Deputy Governor to a parliamentary commission on Tuesday, per Reuters.

“Indonesia central bank as of August 31 had bought 137.49 trillion rupiah of government bonds in primary market; 8.62 trillion rupiah in secondary market,” adds BI’s Damayanti.

USD/IDR grinds lower

As Indonesia's inflation stays well below the BI target range of 2%-4%, the latest one in August was 1.59%, the easy money is likely to continue flowing for some more time. The BI is next meeting on September 20-21.

That said, USD/IDR remains on the back foot around $14,250, down for the fourth day in a row.

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Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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