Indonesia central bank says monetary policy to remain pro-stability

JAKARTA: Indonesia’s central bank governor Perry Warjiyo said on Wednesday that monetary policy will remain pro-stability and that energy subsidies next year will allow Bank Indonesia (BI) to raise interest rates in a measured way.

Warjiyo was speaking at BI’s annual gathering with bankers, government officials and other financial regulators.

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This year, BI has lifted interest rates by a total of 175 basis points, raised banks’ required reserve levels and sold some bonds to tame inflation, currently running near its highest in seven years.