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Clarity on Fed hikes key outcome of Bali meeting
BANK Indonesia (BI) governor Perry Warjiyo said clarity on the gradual pace of US interest rate hikes was one of the key takeaways of the International Monetary Fund and World Bank meetings in Bali.
The signals on policy normalisation from the US Federal Reserve officials and other developed market central bankers were among the "positive" outcomes of the talks, and should hopefully ease pressure in financial markets, especially in emerging economies, Mr Warjiyo said in an interview with Bloomberg TV's Haslinda Amin in Bali on Saturday.
"We are seeing that the normalisation process of monetary policy in advanced countries, especially from the US Fed, will be gradual," he said.
"And the Fed will also continue to communicate clearly the future course of the normalisation process."
With trade tensions overshadowing talks in Bali, policy makers from emerging economies have been worrying about a prolonged rout in financial markets, triggered by US rate hikes and a stronger dollar.
Mr Warjiyo said clarity from the Fed should help in "reducing the volatility of flows as well as volatility of the market and the exchange rate".
With the US and China continuing a tit-for-tat battle on trade, and oil prices on the rise, Indonesia is calling for a multilateral response to protectionist headwinds as well as for global monetary policy to be better synchronised.
The IMF communique was "quite positive", Mr Warjiyo said, with the global economy remaining quite strong. BLOOMBERG