JAKARTA – Emerging markets will be able to weather global monetary tightening, including U.S. rate hikes, “much better” this year compared with previous periods of tightening, Indonesia’s central bank Governor Perry Warjiyo said on Wednesday.
Warjiyo said emerging markets, like Indonesia, had in place a better policy framework, higher foreign exchange reserves and had made efforts to deepen financial markets.
In comments at a seminar ahead of a meeting of G20 finance ministers and central bankers this week, he reiterated Bank Indonesia will maintain its benchmark rate at a record low of 3.50% until it sees early signs of a fundamental increase in inflation.
(Reporting by Gayatri Suroyo, Fransiska Nangoy and Stefanno Sulaiman; Editing by Ed Davies)
