The sudden resignation of Bank Indonesia’s governor highlights a dilemma that he and his central bank peers in the region have faced in calibrating interest rates – either tighten policy to defend weakening currencies and contain inflation, or loosen it to support pro-growth mandates – according to analysts. Perry Warjiyo’s exit has fuelled speculation that he was under pressure to do more to support President Prabowo Subianto’s economic growth agenda. Warjiyo, who led the Indonesian central...
Bank Indonesia Governor Perry Warjiyo has stepped down from his role, Indonesia’s State Secretariat Minister Prasetyo Hadi said on Monday, a surprise move analysts said could rattle investors worried about the central bank’s independence and the country’s fiscal management. President Prabowo Subianto has accepted Warjiyo’s resignation, the minister said ahead of the opening of financial markets in Jakarta. Destry Damayanti, a senior deputy governor at BI, has been appointed as interim governor....