Finance Minister Sri Mulyani Indrawati said the recent interest rate cuts of the US Federal Reserve (the Fed) is an opportunity for Indonesia.
Moreover, developing countries currently face challenges due to uncertainties in the US economy
"Reducing the Fed's interest rate gives a kind of break," she said at Ritz Carlton Pacific Place, SCBD, South Jakarta on Thursday, October 31, 2019.
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According to her, the Fed's interest rate cuts gave an opportunity for Indonesia to take advantage of the momentum. The policy will bring the cost of money lower.
"We hope that this momentum will emerge in the end of 2019 and will continue until 2020," she said.
This week, the Fed decided to cut its benchmark interest rates for the third time this year. the third rate cut this year. The policy was intended to provide stimulus to the US economy.
The Federal Open Market Committee (FOMC) cut its interest rate target to around 1.5 percent-1.75 percent after concluding a two-day policy meeting. The decision was in line with market expectations.