JAKARTA (Reuters) – Bank Indonesia’s plans announced on Thursday to gradually increase reserve requirement ratios (RRR) will have no significant impact on money market rates, Governor Perry Warjiyo said in a conference call with investors and analysts.
The governor also said the plans should not be interpreted as a tightening move, but a path towards normalisation, arguing that liquidity would remain higher than pre-pandemic levels.
“Please do not interpret this as tightening,” he said of the RRR plans, which were announced at the first policy meeting of the year.
(Reporting by Gayatri Suroyo and Fransiska Nangoy; Editing by Ed Davies)
