BI to hold rates until second half of 2022 despite hawkish Fed

Bank Indonesia (BI) governor Perry Warjiyo said at its December meeting that normalisation of policy will not necessarily follow moves by the Fed, and that interest rates would remain low until inflation rises.

JAKARTA: Indonesia’s central bank will wait until the second half of the year before raising rates to nurture economic growth, even though the United States Federal Reserve (Fed) looks likely to tighten monetary policy as soon as March, a Reuters poll shows.

Bank Indonesia (BI) governor Perry Warjiyo said at its December meeting that normalisation of policy will not necessarily follow moves by the Fed, and that interest rates would remain low until inflation rises.