Bank Indonesia Governor Agus Martowardojo. (Antara Photo/Wahyu Putro)

Bank Indonesia Governor Sees 'An Easing Potential' at Next Meeting

AUGUST 16, 2017

Jakarta. Indonesia's central bank governor on Wednesday (16/08) said it might resume easing monetary policy as early as its two-day board meeting that ends on Aug. 22.

Agus Martowardojo told reporters Bank Indonesia (BI), which is mandated to keep inflation in check, will look at all economic indicators before deciding monetary policy.

He said the bank is "pretty happy" with inflation rate  at 3.88 percent in July  but that it would also look at economic growth, the current account and July's trade deficit.

"If all indicators support it, we see an easing potential," he said after President Joko "Jokowi" Widodo's budget speech to parliament.

BI has kept its benchmark rate at 4.75 percent since October. Earlier in 2016, it cut the benchmark six times, by a total of 1.5 percentage points.

Indonesia's annual economic growth in the second quarter was 5.01 percent, below expectations.

Reuters

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