JAKARTA: Indonesia's central bank will assess the level of inflation and trade balance as well as global capital flows and US interest rates before deciding whether to raise the country's key interest rate, a deputy governor said.
At Bank Indonesia's May 16-17 policy meeting, "if it's needed and is shown by those data that we have to raise the rate, then we will make an adjustment," Mirza Adityaswara told reporters on Tuesday.
He also said current capital outflows are temporary and draw no parallels to "harder volatility" Indonesia saw in 2013 and 2015.
The central bank has kept its benchmark rate since September, when there was a 25 basis point cut.
Last week, BI governor said he would be ready to raise the key rate if the rupiah's weakness threatened inflation target or financial stability. On Tuesday, the rupiah hit the lowest level since December 2015, trading at 14,050 to the dollar.
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