BI’s Monetary Policy Becomes More Independent

KOMPAS/ELSA EMIRIA LEBA

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JAKARTA, KOMPAS — The impact on the rupiah exchange rate from the interest rate hike of the United States Federal Reserve (Fed) is likely to be less significant. In this condition, Bank Indonesia’s monetary policy will more independent, especially from the influence of the Fed. For this reason, the central bank is confident about maintaining its benchmark rate, even though the Fed has raised its benchmark interest rate twice since March 2022 for a total of 75 basis points.

With the decline in the Fed’s influence on the stability of the rupiah exchange rate, BI's monetary policy can focus more on controlling inflation while continuing to encourage national economic recovery.