Bank Indonesia says key interest rate near peak

Bloomberg

Bank Indonesia Governor Perry Warjiyo signalled central bank may hold the key rate, saying the benchmark interest rate has “almost reached its peak” after an aggressive hiking cycle helped stabilise the nation’s currency.
While the bank’s monetary policy stance remains “pre-emptive and ahead of the curve,” a more favorable outlook for US interest rate will allow Indonesia to rely on other instruments to stabilise the financial market and support economic growth, Warjiyo told a panel of lawmakers in Jakarta on Wednesday.
Bank Indonesia’s aggressive rates hikes, in response to an emerging market rout triggered by rising US rates, helped nation’s currency
rebound almost 8 percent from a two-decade low last year. With the US Fed turning more dovish about future hikes and headwinds from a slowing global economy increasing, it may find room to pause to support Southeast Asia’s largest economy.