"The share prices have increased and strengthened the rupiah, which is a good sign, and the financial players have responded positively. This is a good development as there is already certainty," the president revealed.Jakarta (ANTARA News) - President Joko Widodo (Jokowi) welcomed the recent hike in interest rate by the US Federal Reserve, viewing it as a positive sign for the global economy, including Indonesia.
"It means that now there is certainty," President Jokowi stated here, Thursday.
The interest rate hike has made everything certain, he remarked.
"Earlier, it was about how much and when. We are already sure about the hike now. This will have a positive effect," the head of state noted.
Jokowi said on Thursday morning that he had closely monitored the developments in the share index.
"The share prices have increased and strengthened the rupiah, which is a good sign, and the financial players have responded positively. This is a good development as there is already certainty," the president revealed.
Reuters reported that the Federal Reserve hiked its interest rates for the first time in nearly a decade on Wednesday, signaling confidence that the US economy had largely overcome the aftermath of the 2007-2009 financial crisis.
The US central banks policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 percent and 0.50 percent, ending a protracted debate on whether the economy was strong enough to withstand higher borrowing costs.
"With the economy performing well and the trend expected to continue, the committee judges that a modest increase in the federal funds rate is appropriate," Fed Chair Janet Yellen stated at a press conference after the rate decision was announced.
"The economic recovery has clearly come a long way," she affirmed.(*)
Editor: Heru Purwanto
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