BI holds rate at 7.5%, lowers reserves requirement

[JAKARTA] Indonesia's central bank held its benchmark interest rate steady on Tuesday as expected, brushing aside a call from the Vice- President to lower it to try to bolster weak growth.

Bank Indonesia's rate hold came at a scheduled meeting just hours after Vice-President Jusuf Kalla called for a reduction in the rate to help growth, which this year is at its weakest since 2009.

BI, in an easing move, lowered the statutory reserves ratio to 7.5 per cent from 8 per cent, effective Dec 1.

A Reuters poll expected Bank Indonesia (BI) to keep the key policy rate at 7.5 per cent, where it's been since February, and not change policy before a possible US rate hike in December.

REUTERS