TEMPO.CO, Jakarta - Bank Indonesia (BI) governor Perry Warjiyo said that the policies of multinational central banks—including The Federal Reserves and the European Central Bank (ECB)—will be the main topic of BI's board of governors' meeting on June 27 and 28.
Perry said there is a possibility that the central bank will decide on another hike for the 7-Day Repo Rate (7DRR) benchmark interest rate.
"We could either raise the interest rate, which may be followed with a relaxation in macro-prudential policies in the form of LTV (loan-to-value). We will make an announcement later," Perry said here on Friday, June 15, 2018.
In May, BI raised the 7DRR twice—each hike by 25 bps. Today, the 7DRR is 4.75 percent.
Perry said that raising interest rates is not the only option to maintain the economic stability—especially the rupiah's exchange rate.
"BI is ready to apply preemptive policies, front loading, and a head de curve to respond to changes in the [global] directions of monetary policies; especially that of The Fed and the ECB," he remarked.
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