Indonesia adopts cautious stance on US new trade policy

Martowardojo: ‘The central bank is closely monitoring US fiscal and trade policies as they will have a big impact on the world.’ – Reuters

JAKARTA: Indonesia’s central bank gave its strongest signal yet that it may be done with cutting interest rates as it adopts a cautious stance with the US Federal Reserve set to tighten further and president Donald Trump pursuing a new trade policy.

Bank Indonesia cut its benchmark rates six times in 2016, by a total of 150 basis points, in a bid to boost lending and revive economic growth. The bank left rates unchanged last month while maintaining at the time that there was room for further easing.