Indonesian central banker’s exit signals dilemma over rate policy, growth target

The sudden resignation of Indonesia" class="entity-link entity-organization" data-entity-id="144496" data-entity-type="organization">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 for eight years, did not indicate his intention to leave until Friday, according to a Bloomberg report. He resigned on Monday nearly two years before the end of his second term.