Indonesia central bank to continue accommodative policy to boost monetary growth

Indonesia central bank to continue accommodative policy to boost monetary growth

Indonesia’s central bank plans to maintain its accommodative monetary policy this year to support economic growth, said Bank Indonesia Governor Perry Warjiyo on Wednesday.

“All Bank Indonesia’s policy instruments are focused on keeping and strengthening the economic growth momentum,” Warjiyo told a news conference. “Accommodative monetary policy continues,”

Bank Indonesia (BI) has targeted the economy to grow at 5.1%-5.5% this year, a slight increase from 5.1% expected for 2019.

Stronger economic growth, low inflation, and foreign inflows had resulted in the Rupiah being a strong currency, Warjiyo said, adding that the appreciation “reflects the credibility” of BI and the government’s policies.

The Rupiah was 0.07% weaker on Wednesday, trading at 13,660/USD by 0306 GMT.

BI’s head of monetary management said earlier on Wednesday that the central bank “stands ready” to intervene in spot foreign exchange, bonds and domestic non-deliverable forward markets to guard the strength of the Rupiah.