Many economists are, like sports reporters and politicians, paid to make trivialities sound profound.
The context of what was said is that nominal interest rates are being raised worldwide due to increases in interest rates in the US, the world's largest financial market. The "otherwise" refers to the increase in US interest rates. So the meaning is that "if it were not for the increase in interest rates in the US, the best domestic policy for most countries, which currently have low inflation and weak growth in wages, would be to avoid increasing interest rates." It is unbelievably sloppy speech to disguise a meaningless utterance. "If wishes were horses, then beggars would ride." He is saying that if things were different, then domestic policy should be different. OK then.
Now he may have wanted to say that it would be preferable to stabilize US interest rates because rising interest rates are not good for most of the world, but, at least in what was reported, he does not get close to making any such clear statement. (I have no idea whether that statement is valid or not, but it is clear and meaningful.)