Bank Indonesia to reduce liquidity in 2022, keep rates low until inflation rises


JAKARTA, Nov 27 (Reuters): Indonesia's central bank plans to reduce the amount of excess liquidity in the banking system next year without disrupting lending, but will keep interest rates low until it sees signs of inflation rising, its governor had announced this week.

This would reflect a shift in Bank Indonesia's (BI) monetary policy stance to "pro-stability" in 2022, from "pro-growth" currently, Perry Warjiyo said, adding that the bank's other policies will remain supportive of the economic recovery.

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Bank Indonesia , Reduce Liquidity , 2022

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