TEMPO.CO, Jakarta - Bank Indonesia (BI) governor Perry Warjiyo said he will respond to US and Europe central banks` interest rate hike policies by making pre-emptive, front loading, and ahead-of-the-curve policies.
Perry said BI's policies may take form as an interest rate hike coupled with relaxations in loan-to-value (LTV) to boost the housing sector.
"We will also continue with applying double interventions, loose liquidity, and intensive communication," he said in an official statement on Tuesday, June 19.
Read: Bank Indonesia Raises Interest Rate again to 4.75 Percent
Perry said BI and the OJK will enhance coordination to maintain stability and encourage growth. The central bank believes Indonesia's economy is still robust, especially in terms of financial market assets that remain attractive to investors.
Bank Indonesia will hold its board of governors' meeting on June 27 and 28. In the last meeting, the central bank decided to increase the 7-Day Repo Rate (7DRR) benchmark interest rate to 4.75 percent.
Bisnis.com
