Jakarta - Bank Indonesia (BI) indicated that the withdrawal of monetary stimulus, popularly known as tapering, would continue in 2022, even if the burden-sharing agreement with the government is implemented again.

Governor of Bank Indonesia (BI) Perry Warjiyo stated that BI gradually began to withdraw liquidity from the market to impede economic recovery and bank lending.

"In various ways, BI's plans for 2022 have been conveyed to anticipate tapering, ranging from new liquidity reductions at the end of 2022 to interest rate policies," he said in Jakarta on Tuesday (24/8).

According to Perry, BI estimates that the inflation pressure will only increase in 2023. Therefore, the benchmark interest rate is expected to begin climbing by the end of 2022.

"Not 2021 and most likely not in 2022, therefore BI has anticipated it," he explained.

Furthermore, BI continues to anticipate the tapering policy of the Fed, the cen