Jakarta. Indonesia's central bank will remain ahead of the curve in its interest rate policy, its senior deputy governor Mirza Adityaswara said in a House of Representatives hearing on Thursday (13/09).
"Seeing that the United States could raise interest rates by 0.75-1.25 percentage points, Bank Indonesia (BI), corresponding to our 'ahead of the curve' (policy), our position will have to remain hawkish," Mirza said, when asked by a House member whether BI will raise rates again.
BI has hiked its benchmark rate four times by a total of 125 basis points since mid-May to keep the rupiah from falling too quickly. The central bank has also regularly intervened in the currency market.
The rupiah was trading at 14,835 a dollar at 0830 GMT Thursday, near its weakest level in 20 years, pressured by the rising U.S. dollar and concerns about the government's finances.