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Bank Indonesia likely to revise down 2020 GDP growth

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Indonesia's central bank is likely to revise down its outlook for 2020 economic growth at its next policy meeting as a coronavirus spreads wider globally, its governor, Perry Warjiyo, said on Wednesday.

[JAKARTA] Indonesia's central bank is likely to revise down its outlook for 2020 economic growth at its next policy meeting as a coronavirus spreads wider globally, its governor, Perry Warjiyo, said on Wednesday.

At the February policy meeting, Mr Warjiyo said, Bank Indonesia had predicted the virus outbreak would have a V-shaped effect on domestic economic growth, with a baseline rate of 5.1 per cent that could go up to 5.2 per cent with fiscal support.

"But with outbreaks in developed countries, we have to calculate again," he told a banking conference.

"We are in the process of calculating. In the next policy meeting, the likelihood is the figure will be lower."

The next policy meeting is on March 18 and March 19.

Mr Warjiyo reiterated the central bank's commitment to stabilise financial markets, saying Indonesian markets had seen capital outflows equivalent to 40.16 trillion rupiah (S$3.89 billion) in the year to date.

REUTERS

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