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BI expects Fed rate to remain unchanged in FOMC meeting
Bank Indonesia (BI) expects that the US Federal Reserve will not raise its benchmark interest rate during the Federal Open Market Committee (FOMC) meeting, which started Tuesday and ends Wednesday
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Bank Indonesia (BI) expects that the US Federal Reserve will not raise its benchmark interest rate during the Federal Open Market Committee (FOMC) meeting, which started Tuesday and ends Wednesday.
'We believe there won't be a Fed rate increase in the near term, not this year,' BI deputy governor Perry Warjiyo told reporters on Tuesday, after Bank Indonesia launched a book entitled Islamic Banking's Journey in Indonesia in Surabaya.
The central bank, he continued, will hold a board of governors meeting to decide whether to increase the BI rate, which is currently 7.5 percent.
'We have to wait for the meeting,' Perry asserted.
Perry said BI would respond to any move the US central bank made, combining external factors with the domestic monetary situation such as inflation, the rupiah's exchange rate and gross domestic product (GDP) growth.
The Federal Reserve will issue a policy statement at the conclusion of is two-day meeting on Wednesday.
The global market expects the US central bank to hold off on its first rate hike in nearly a decade until next year, as the US economy has yet to improve as expected. (ags/dan)
