UOB economist Enrico Tanuwidjaja notes that Bank Indonesia (BI) kept the BI Rate at 5.75% in August, prioritizing Rupiah and macro-financial stability over growth. Tanuwidjaja highlights BI’s focus on external risk management, use of liquidity and macroprudential tools to support domestic conditions, and a still-tight monetary stance as global uncertainty and capital flow volatility persist.
BI prioritizes Rupiah and stability
“In her maiden lead, the Acting Governor Damayanti stated that preserving rupiah stability amid heightened global financial market volatility is the key focus, while keeping inflation within BI’s target range of 2.5% ±1%…
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