Indonesia’s Central Bank Has Bigger Worries Than Its Next Rates Move [Bloomberg Business News]
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Source: Bloomberg Business News
By Karlis Salna More stories by Karlis Salna All economists in Bloomberg survey see no move on Thursday Bank Indonesia vows to keep intervening to protect currency Indonesia’s central bank has more pressing things to worry about than its next interest-rate move. Policy makers are instead seeking to sandbag the currency against more capital outflows as the U.S. Federal Reserve moves ahead with its tightening plan. Governor Agus Martowardojo has signaled that Bank Indonesia will keep dipping into foreign reserves to support the rupiah, while all but scotching talk of a rate increase anytime soon. With the currency tumbling and foreign investors selling the nation’s stocks and bonds, all 20 economists in a Bloomberg survey predict the seven-day reverse repurchase rate will remain at 4.25 percent on Thursday. That would be the central bank’s sixth straight month on hold even as oth
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