May 30, 2018
By InvestAdvocate
Lagos (INVESTADVOCATE)-The International Monetary Fund (IMF) through Changyong Rhee, director of Asia & Pacific Department on Wednesday endorsed Bank Indonesia’s increases in the policy rate on May 17 and May 30 and said it was appropriate to address possible risk.
“Bank Indonesia’s increases in the policy rate on May 17 and May 30 were appropriate to address possible risks to inflation from the recent strengthening of the US dollar globally, higher international interest rates and oil prices,” Rhee said.
According to him, like many other emerging market economies, Indonesia has been facing capital outflows and depreciation pressures in recent weeks, and the authorities have responded appropriately by allowing interest rates and the exchange rate to adjust.
“While the current situation calls for enhanced vigilance and close monitoring, Indonesia is now in a much stronger position than in the past to face external shocks due to the health and resilience of the economy,” Rhee added.