Indonesia’s Warjiyo says there is room to ease rate but is watching Fed

HONG KONG: The pace of Federal Reserve interest rate hikes will be a key factor for whether or not Indonesia’s central bank adjusts policy over coming months, deputy governor Perry Warjiyo said.

“Our communication is clear and our signal is clear,” Warjiyo said in an interview in Washington. “We are holding our policy rate unchanged even though we have room for monetary easing from the domestic perspective, but we need to take into account global events such as increases in the Fed’s fund rate.”