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View all search resultsThe central bank has announced a continuation of its burden-sharing scheme with the government and has purchased trillions of rupiah worth of government bonds this year, but an economist questions the legal basis for continuing a policy initially intended as a crisis response.
According to the World Bank, the introduction of the SRBI has had unintended consequences of crowding out government borrowing, as commercial banks have reduced their holdings of government securities and turned toward BI’s new securities.
Bank Indonesia (BI) Governor Perry Warjiyo has signaled that the central bank will have less room for continued monetary policy easing next year as pressure mounts on the rupiah as a result of the more inward-looking policy expected from the administration of US president-elect Donald Trump.
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