Leading first BI meeting, Destry stresses growth, vigilance
Interim BI governor Destry Damayanti, widely expected to become the central bank’s chief soon, has conveyed a restrictive monetary policy stance in a turbulent global economy but also emphasized the need to push growth.
First BI meeting led by Destry, who stresses growth and vigilance amid global uncertainties. Interim governor Destry Damayanti, expected to become the central bank's chief, conveyed a cautious monetary policy stance during a turbulent global economy. The Bank Indonesia (BI) rate remained at 5.75 percent, unchanged since June. Destry warned of high pressure on the financial sector and global markets, stating that the world is entering a "higher for longer" era.
She emphasized the need to push growth while addressing the challenges posed by high US inflation, driven by soaring oil prices due to the Middle East conflict. Destry stated that the US might need to issue more debt, leading to higher US Treasury yields, which would impact the Indonesian economy. The global bond market has experienced a significant selloff, raising concerns over developed economies' mounting government debt levels. Analysts warn that the US debt pile of nearly US$40 trillion is increasingly unsustainable.
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