Indonesia to maintain stable monetary policy in 2019
Bank Indonesia (BI) said on November 27 that it will continue to adopt its pre-emptive and ahead-of-the-curve monetary policy in a bid to maintain economic stability amid the high external pressure in 2019.
Bank Indonesia governor Perry Warjiyo gives a press conference after an annual meeting of the central bank in Jakarta on November 27 (Source: en.antaranews.com)Jakarta (VNA) - Bank Indonesia (BI) said on November 27 that it
will continue to adopt its pre-emptive and ahead-of-the-curve monetary policy
in a bid to maintain economic stability amid the high external pressure in 2019.
"We will maintain the pre-emptive and ahead-of-the-curve monetary stance. The focus of the monetary policy will continue on stability especially to control inflation and exchange rate," ANTARA News quoted BI Governor Perry Warjiyo as saying at an annual meeting of the central bank.
Perry said based on evaluation of the economy in 2018, the central bank would increase its policy mix.
"Although the bank will continue to focus its monetary policy more on stability, its macro-prudential policy, payment system and sharia economy would be accommodated to shore up economic growth," he added.
The pre-emptive and ahead-of-the-curve monetary policy is also aimed at reducing the current account deficit to 2.9 percent of the GDP in 2019, after widening in 2018 as a result of a surge in imports.
Perry pledged while focusing monetary policy on pro-stability, the central bank would seriously seek to maintain adequate liquidity in the financial market.
"Stability would continue to be a priority through double intervention in the foreign exchange market. Adequacy of foreign exchange reserve would be maintained to prop up rupiah stability. Cooperation in swap agreement in the banking sector would be strengthened," he said.
Three important records evaluated by the central bank in 2018 included the strengthening of domestic economic resilience, low inflation, rupiah stability, safe fiscal deficit, and financial system stability; increase in competitiveness, industrialisation, exports, and investment; and the enhancement of synergy.-VNA
"We will maintain the pre-emptive and ahead-of-the-curve monetary stance. The focus of the monetary policy will continue on stability especially to control inflation and exchange rate," ANTARA News quoted BI Governor Perry Warjiyo as saying at an annual meeting of the central bank.
Perry said based on evaluation of the economy in 2018, the central bank would increase its policy mix.
"Although the bank will continue to focus its monetary policy more on stability, its macro-prudential policy, payment system and sharia economy would be accommodated to shore up economic growth," he added.
The pre-emptive and ahead-of-the-curve monetary policy is also aimed at reducing the current account deficit to 2.9 percent of the GDP in 2019, after widening in 2018 as a result of a surge in imports.
Perry pledged while focusing monetary policy on pro-stability, the central bank would seriously seek to maintain adequate liquidity in the financial market.
"Stability would continue to be a priority through double intervention in the foreign exchange market. Adequacy of foreign exchange reserve would be maintained to prop up rupiah stability. Cooperation in swap agreement in the banking sector would be strengthened," he said.
Three important records evaluated by the central bank in 2018 included the strengthening of domestic economic resilience, low inflation, rupiah stability, safe fiscal deficit, and financial system stability; increase in competitiveness, industrialisation, exports, and investment; and the enhancement of synergy.-VNA
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