Waluyo said BI will work with the authorities to address supply issues that had pressured customer prices, adding: “We will not let heading inflation go up”.
He also repeated that BI will only increase rates when it sees a persistent rise in core inflation.
BI is one of very few Asian central banks that has not really lifted its standard rate from a report low of a few. 50 per cent, since earnings from item exports have shored up Indonesia’s economic resilience.
Indonesia is in a better spot to navigate current economic market volatility amid a global monetary tightening up and rising geopolitical tensions, Waluyo said.
He looked after BI’s policy normalisation measures, saying it was not behind the curve as it got moved to tighten liquidity in the financial markets.
He added that as sponsor of the Group of twenty major economies, Indonesia hopes tension in the Taiwan Strait does not derail discussions and efforts to accelerate economic recovery from your COVID-19 pandemic.