Indonesia central bank holds key rate at 7.50%, as expected

[JAKARTA] Indonesia's central bank held its benchmark interest rate steady on Tuesday, saying its focus was to maintain stability in the rupiah.

Bank Indonesia has held the policy rate at 7.50 per cent since February when it last cut rates by 25 basis points. Analysts in a Reuters poll had expected the central bank to keep all interest rates unchanged.

Annual inflation in July was at 7.26 per cent, virtually identical with June, the highest this year.

The rupiah is the second-worst performing currency in emerging Asia after Malaysia's ringgit, trading at a level not seen since mid-1998.

REUTERS