Jakarta (ANTARA) - Governor of Bank Indonesia (BI) Perry Warjiyo estimates more balanced growth in the global and domestic economy in 2022, albeit several lingering risks that may disrupt economic stability and recovery.

"Improvements in the global and domestic economy continued despite the turmoil caused by transmission of the Delta variant. Stability is maintained, including of the financial system," Warjiyo noted at a working meeting with Commission XI of the House of Representatives here on Thursday.

For domestic economic growth, the BI governor believes that the balance will be supported by export performance as well as improving consumption and investment.

However, several risks will continue to overshadow the global and national economic balance, such as the Fed normalizing the monetary policy and the widespread transmission of the Omicron variant.

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Thereafter, the balance of global and domestic economic growth this year will also be influenced by geopolitical risks, commodity prices, and fairly high inflation.

Warjiyo projects that the Fed will raise the interest rates four times in 2022 in the months of March, June, September, and the end of the year, and this will have an impact on Indonesia.

The BI governor affirmed that the increase in the Fed's interest rates would have an impact on increasing the US Treasury yields and capital flows to emerging markets, including to Indonesia.

Hence, Warjiyo has ensured that coordination by the Financial System Stability Committee (KSSK) will continue to be strengthened to jointly restore the economy and maintain financial system stability.

"We have the opportunity to encourage economic growth, but there are also risks that we need to prevent in order to continue to support Indonesia's economic recovery," he affirmed.
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Translator: Katriana
Editor: Suharto
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