Indonesia’s central bank governor stated on Monday ( Jul 8 ) that while the rupiah is expected to be more stable, it could be possible to reduce interest rates in the fourth quarter. However, it will concentrate its efforts to maintain currency stability for the time being.
The ringgit hit a four-year poor of 16 475 per US money last fortnight due to a strong dollar and concern over the coming government’s spending plans.
The rupiah is recovering from recent weeks of weakness, and there should be a trend toward strengthening in the coming months of this year as a result of an anticipated rate cut from the US Federal Reserve, according to Bank Indonesia ( BI ) Governor Perry Warjiyo.
BI expects the ringgit to business at an average of between 15, 700 to 16, 100 per money this year, he told congress. It was trading at 16, 250 a penny as of 0821 GMT.
” We will see if there is any place for easing in the third fourth”, he said. ” For then our focus is maintaining money security”.