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JAKARTA: Indonesia’s central bank governor Perry Warjiyo said on Wednesday that monetary policy will remain pro-stability and that energy subsidies next year will allow Bank Indonesia (BI) to raise interest rates in a measured way.

Warjiyo was speaking at BI’s annual gathering with bankers, government officials and other financial regulators.

Indonesian rupiah gains, stocks drop as GDP fuels rate hike view

This year, BI has lifted interest rates by a total of 175 basis points, raised banks’ required reserve levels and sold some bonds to tame inflation, currently running near its highest in seven years.

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