Indonesia central bank to ease monetary policy when time is right: official

[JAKARTA] Indonesia's central bank has room to loosen its monetary policy further and it will do so when the time is right, Juda Agung, its executive director for economic and monetary policy, told reporters on Wednesday.

"The room (for monetary loosening) is there. We will decide the right time (to loosen policy) by looking at the latest developments at home and abroad," Mr Agung told reporters.

Mr Agung also said Bank Indonesia thinks the annual inflation rate, which topped 6 per cent for most of 2015, is no longer "a big issue" this year. Indonesia's annual inflation rate was 3.21 per cent in July.

He is optimistic the economy will grow more strongly in the second half of this year on the back of higher consumption and fiscal spending. The next BI policy review is on Aug 19.

REUTERS