Bank Indonesia Expects Stable Rupiah, Calm Market in 2016
Jakarta. Indonesia's central bank expects a stable rupiah and no market volatility in response to the next US Federal Reserve rate-increase next year, its deputy governor said on Friday.
"Looking at Yellen's statement, the next rate increases wouldn't be high and it would be gradual. If it is done so, the market can better anticipate. There won't be fluctuations in the market," Deputy Governor Perry Warjiyo told reporters.
Certainty in US monetary policy and improvement in domestic macroeconomic indicators are positive factors that would support a stable rupiah in 2016, he added.
Bank Indonesia on Thursday held its benchmark interest rate unchanged but raised the possibility of a cut in January after the country's markets took in their stride the Fed's first rate hike in nearly a decade.
Reuters
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