Reuters special write-up - Indonesia governor says will signal policy rate moves ahead of time

JAKARTA (Reuters): Bank Indonesia (BI) Governor Perry Warjiyo said the central bank does not expect inflation to top 3% until 2023, but the central bank would start communicating possible changes to its policy rates ahead of time to avoid any market shocks.

With the economic outlook brightening, the Indonesian central bank plans to start reducing liquidity in the banking system next year, rolling back loose monetary policy used to weather the pandemic, although it is closely monitoring the spread of the Omicron variant of the coronavirus.