JAKARTA, Feb 19 (NNN-ANTARA) – Finance leaders from the Group of 20 (G20), agreed on realising a well-calibrated, well-planned, well-communicated normalisation, in the monetary policy, to minimise the impacts of the Fed’s raising interest rates.
The consensus was made last night, during the second day of the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in Jakarta, with Indonesia serving as host country.
Bank Indonesia’s Governor, Perry Warjiyo, told a press conference that, developed countries should ensure that the normalisation policy only posed minimum impacts to the global financial market and that, it did not pose any spillover effect to developing countries.
“This is an urgently important thing to do, so that global economy can return to a long-term growth and the scar caused by the COVID-19 pandemic can be healed faster,” Warjiyo said.
The Federal Reserve recently said, the central bank would have to raise interest rates up “more aggressively,” expecting “four, maybe five hikes” this year, which was expected to impact the debt condition or the financial stability of other countries, especially emerging economies.
Indonesia’s central bank has also moved to curb inflation, including by promoting the use of local currency settlement, in cross-border trade and investment, as an effort to reduce dependency on the U.S. dollar.
Warjiyo said that, the FMCBG meeting also discussed broader issues related to the global financial sector, risks in global supply chains and energy issues.– NNN-ANTARA
