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
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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.
'Now, 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.
'If 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.
'The 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)
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