Early signs of rising inflation may emerge at year-end: Bank Indonesia

• Jan 27, 2022

[JAKARTA] Indonesia’s central bank governor Perry Warjiyo said on Thursday early signs of inflation might be seen at the end of this year and would be the basis for Bank Indonesia (BI) to start considering raising its policy interest rates.

Warjiyo said BI will rely more on bond yield differential flexibility to mitigate global spillover from tightening by the US Federal Reserve while it starts “normalising” excess liquidity in South-east Asia’s biggest economy.

BI last week announced staggered 300 basis points hikes in the reserve requirement ratio. REUTERS