TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

BI unlikely to adjust interest rate: Governor

Stay vigilant: Bank Indonesia (BI)governor Agus Martowardojo says it is not possible for it to adjust its benchmark interest rate (BI rate) with the looming uncertainty around the global economy

The Jakarta Post
Jakarta
Thu, August 27, 2015

Share This Article

Change Size

BI unlikely to adjust interest rate: Governor Stay vigilant: Bank Indonesia (BI)governor Agus Martowardojo says it is not possible for it to adjust its benchmark interest rate (BI rate) with the looming uncertainty around the global economy. (Antara/Ujang Zaelani) (BI)governor Agus Martowardojo says it is not possible for it to adjust its benchmark interest rate (BI rate) with the looming uncertainty around the global economy. (Antara/Ujang Zaelani)

S

span class="inline inline-center">Stay vigilant: Bank Indonesia (BI)governor Agus Martowardojo says it is not possible for it to adjust its benchmark interest rate (BI rate) with the looming uncertainty around the global economy. (Antara/Ujang Zaelani)

BI governor Agus Martowardojo said in Jakarta on Thursday that the central bank had always conducted thorough analysis before making decisions in meetings of its board of governors.

'€œNow, we'€™ve observed that external conditions are still full of uncertainty. Trade volume is low, commodity prices continue to decline, global prices decline and there are still risks that the US will increase its fund rate. There is also a possibility that China'€™s decision to devalue its yuan will be followed by other countries. In such conditions, it is not possible for us to change our stance,'€ said Agus as quoted by Antara in Jakarta on Thursday.

The governor said BI would maintain its current interest rate policies to make sure that Indonesia'€™s macro economy was well maintained.

'€œIf we want to pursue greater economic growth, it should be quality growth. We don'€™t want economic growth that is high but that can easily drop within just several years,'€ said Agus.

He said the central bank would remain vigilant against the global economy'€™s dynamics and highlighted the need for related domestic authorities to maintain positive sentiments.

'€œThe most important thing is to stay calm and avoid conflicting signals, inconsistent policies and speculation. If we can commit to our policies, our economy can get better,'€ said Agus.

BI has maintained the BI rate at 7.5 percent after declining the rate by 25 basis points in February. (ebf)

 

 

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.