JAKARTA. Newly elected Bank Indonesia (BI) senior deputy governor Mirza Adityaswara said an increase in the central bank's benchmark interest rate (BI Rate) needed to be supported with tighter fiscal policies in order to effectively control imports. “We have to control imports, but it cannot be carried out merely by imposing a higher benchmark interest rate," said Mirza after a plenary meeting at the House of Representatives in Jakarta on Tuesday, as quoted by Antara news agency. "Even if it was possible, the interest rate increase would have to be very high. This is not wise, isn’t it?”
Higher interest rate is not enough to curb imports
JAKARTA. Newly elected Bank Indonesia (BI) senior deputy governor Mirza Adityaswara said an increase in the central bank's benchmark interest rate (BI Rate) needed to be supported with tighter fiscal policies in order to effectively control imports. “We have to control imports, but it cannot be carried out merely by imposing a higher benchmark interest rate," said Mirza after a plenary meeting at the House of Representatives in Jakarta on Tuesday, as quoted by Antara news agency. "Even if it was possible, the interest rate increase would have to be very high. This is not wise, isn’t it?”