Indonesia Ready to Boost Rates, Buy Bonds to Shield Rupiah
- Economic recovery, attractive yields should lure foreign funds
- Core inflation should return to target in early 2023: Governor
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Bank Indonesia stands ready to further raise interest rates and boost short-term bond yields to support the rupiah into 2023, Governor Perry Warjiyo said.
The rupiah, Asia’s worst performer this quarter, should bounce back next year on the back of Indonesia’s recovery momentum and cooling inflation, Warjiyo said at the central bank’s annual meeting on Wednesday. The monetary authority will continue its “triple intervention” strategy and buy up bonds in the secondary market to maintain “competitive” yields.