BI Governor Reveals Global Monetary Policy 'Tight'; Here's Why

Jakarta, CNBC Indonesia - The Governor of Bank Indonesia (BI), Perry Warjiyo, said that heightened volatility in the global economy is prompting central banks in many countries to begin lifting their policy rates. He outlined this at a press briefing following the Board of Governors Meeting (RDG) on Wednesday, 20 May 2026.

Consequently, Perry believes global monetary policy is moving into a ‘tight’ territory.

“Response of global monetary policy is tight. Central banks (globally) are raising interest rates,” Perry said on Wednesday, 20 May 2026.

In line with this, Perry expects the Fed funds rate to remain unlikely to fall until the end of the year. He even foresees a rate hike by the Fed in 2027 amid high US inflation.

According to Trading Economics, the trend in benchmark rates of several countries remains restrained. Of the 19 countries and regions tracked, most central banks have not altered their rates from the previous period. Only Australia was recorded as raising rates. Meanwhile, Singapore, Mexico, Brazil, and Russia have cut rates.