Indonesia govt supports changes to central bank benchmark rate policy
[JAKARTA] Indonesia's government supports Bank Indonesia's (BI) plan to adopt a new benchmark policy rate, saying that the central bank needs an instrument that more effectively influences market liquidity, the chief economics minister said on Wednesday.
Minister Darmin Nasution told reporters that BI talked with the government about the plan, which he said was "in line with the government's expectation". "What BI must influence is the expansion and contraction of liquidity... That requires a suitable instrument," he added.
BI will announce on Friday its change to its benchmark policy rate. Central bank and market sources told Reuters late on Tuesday that it is likely the seven-day reverse repo will replace the current reference rate.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Beijing city to subsidise domestic AI chips, targets self-reliance by 2027
China passes tariff law as tensions with trading partners simmer
Blinken meets Chinese counterpart Wang Yi in Beijing
South Korea’s public finances no longer a credit rating ‘strength’: Fitch
UK consumer confidence improves as inflation and taxes fall
Inflation in Japan’s capital falls below BOJ target, slows for second month