BI focuses on growth, in no rush to raise rates

Slow recovery: A worker arranges palm oil fruits at a collection centre in Aceh. Indonesia’s economic recovery is still in its early stages with inflation below 2%. — AFP

BENGALURU: Indonesia’s central bank will wait until the end of next year before raising interest rates as it tries to aid the economic recovery from the Covid-19 pandemic, keeping a close watch on any United States Federal Reserve (Fed) policy moves, a Reuters poll found.

Since the pandemic started, Bank Indonesia (BI) has cut interest rates by a total of 150 basis points and allowed banks to issue loans for the purchase of vehicles and properties without requiring a down-payment to support demand.