Indonesia economy: Central bank steps up currency support using rates and monetary tools

Indonesia's central bank is moving to reassure markets, saying it's stepping up efforts to stabilise the rupiah, after the surprise resignation of Governor Perry Warjiyo. Bank Indonesia says it's strengthening its policy mix to support the currency. It will be using not just interest rates, but also foreign exchange intervention and other monetary tools to attract foreign investment and manage liquidity. The governor’s resignation has renewed focus on one of the cornerstones of monetary policy: central bank independence. Olivia Marzuki explains why it matters, and why investors are watching closely.