BI to reduce liquidity in 2022 as Fed signals taper

BI governor Perry Warjiyo said the bank planned to raise its benchmark seven-day reverse repo rate (7DRRR) by the end of 2022, among other measures.

JAKARTA: Bank Indonesia (BI) plans to begin reducing liquidity on domestic financial markets next year, in response to signals from the United States Federal Reserve (Fed) that it is likely to start retracting its “easy money” policy this year.

BI governor Perry Warjiyo said the bank planned to raise its benchmark seven-day reverse repo rate (7DRRR) by the end of 2022, among other measures.