JAKARTA: Indonesia’s central bank has “many instruments” it can use to prop up economic growth amid the risk of slowdown due to the spread of coronavirus, its governor Perry Warjiyo said on Wednesday.
Warjiyo made the remarks in response to a reporter’s question on whether Bank Indonesia had room to cut interest rates further after the US Federal Reserve trimmed interest rates by 50 basis points.
Indonesia has “more than enough” foreign exchange reserves to maintain market stability, he told a media forum.
Bank Indonesia’s baseline scenario was for the coronavirus to have a “mild effect” on the economy that would see growth dropping to 4.9% in the first quarter, then improving to near 5% in the second quarter, and 5.1% and 5.2% in subsequent quarters. – March 4, 2020, Reuters
