Indonesia's Joko pledges no govenment intervention in monetary policy amid weak rupiah
[JAKARTA] Indonesia's President Joko Widodo promised on Monday that the government will not intervene in monetary policy decisions by the central bank in response to a weakening rupiah currency.
"The government will not intervene in monetary (policy) because it is the policy of Bank Indonesia," Mr Joko told reporters, adding that he believed the fundamentals of Southeast Asia's largest economy were "good".
BI Governor Agus Martowardojo last week said he would be prepared to raise the benchmark interest rate if the rupiah's weakness threatened the bank's inflation target or disrupted financial market stability.
The rupiah has been trading near its lowest since January 2016 in the past week. It traded at 13,870 a dollar at 0310 GMT Monday.
REUERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Vietnam tycoon appeals against US$27 billion fraud death sentence
US announces new restrictions on firearm exports
Central banks will probably only cut half as much as they hiked
US consumer sentiment falls as inflation expectations climb
HSBC wins £1.3 billion suit over Disney film finance scandal
WTO countries to reboot dispute reform negotiations