Indonesia C.Bank Reiterates Pledge to Keep Rates at Record Lows

BANK INDONESIA / BI - JAKARTA. Indonesia's central bank reiterated a pledge on Wednesday to keep its main policy interest rates unchanged at record lows, even as it sees a risk of faster monetary tightening in the United States amid high global inflation.

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Governor Perry Warjiyo told a news briefing Bank Indonesia sees the Fed raising rates seven or more times this year, which will push up U.S. Treasury yields. Indonesian government bond yields will rise in response within a "normal" range, he said.

The central bank is still confident inflation will remain within its 2% to 4% target this year, the governor said.