You are here

Indonesia central bank holds key rate at 7.50%

[JAKARTA] Indonesia's central bank held its benchmark interest rate steady on Thursday, a widely-expected decision reflecting pressures preventing it from making a cut to try to spur faster economic growth.

A Bank Indonesia (BI) spokesman, however, said that pressure on macroeconomic stability was receding, providing room for monetary policy easing in the future.

All analysts in a Reuters poll had expected the central bank to keep the policy rate at 7.50 per cent, where it has been since February.

In their view, the need to support the weak rupiah has been a key factor blocking BI from cutting interest rates to help the economy, now growing at its slowest pace in six years.

At times, the rupiah has been volatile this year. After a prolonged fall, it strengthened more than 9 per cent last week.