Indonesian FinMin Indrawati: Bank Indonesia may ease monetary policy, IDR trades weaker

The Indonesian Finance Minister Sri Mulyani Indrawati said late-Wednesday that country’s central bank, Bank Indonesia (BI), could ease its monetary policy, as global central banks are shifting to looser monetary policy to bolster their economies in the face of a growth slowdown.

 India, Australia, New Zealand, the Philippines and Malaysia all resorted to rates cut in recent weeks. 

Indrawati said: “When the situation has now changed, especially in advanced countries, including about the direction of monetary policies, and there is a signal of the global economy weakening, I think Bank Indonesia will also adjust its monetary policy stance.”

“How will BI do it? We will respect whatever they will do,” added Indrawati.  

Bank Indonesia is scheduled to announce its rate decision on June 20.

USD/IDR trades firmer near 14,280 region, at fresh weekly tops.