IMF gives thumbs up to Indonesia’s new monetary operating framework

Photo: Bank of Indonesia

The International Monetary Fund has praised efforts taken by Bank Indonesia to improve its monetary policy transmission.

In its latest Article IV consultation, the fund took note of the reforms implemented by the bank in the past year, saying early indicators were "favourable".

The central bank "shifted" its policy rate to the seven-day reverse repo rate in August 2016, and narrowed the interest rate corridor between the overnight lending facility and deposit facility to 75 basis points above an