November 27, 2018 / 6:50 AM / 8 months ago

Indonesia to consider more easing of liquidity rules in 2019 gov

JAKARTA, Nov 27 (Reuters) - Bank Indonesia (BI) will review whether to further relax liquidity rules for the banking industry next year to compensate for its interest rate hikes, the governor said on Tuesday.

Perry Warjiyo told reporters he wants banks to shift from retail funding to wholesale funding by issuing more securities. Banks should also be helping companies’ expansion by purchasing more corporate bonds than at present, he said.

The governor said BI’s policy focus next year remains maintaining financial stability, pledging again to be “pre-emptive” and “ahead of the curve” when setting interest rates. BI has raised rates six times since May to defend the rupiah.

Warjiyo also said the rupiah remains undervalued at the current exchange rate, despite recent appreciation. (Reporting by Gayatri Suroyo and Maikel Jefriando)

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