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Indonesia's central bank holds key rate at 7.50%

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Indonesia's central bank kept its benchmark interest rate unchanged at 7.50 per cent on Tuesday, saying the level was in line with its efforts to manage inflation targets for this year and 2016.

[JAKARTA] Indonesia's central bank kept its benchmark interest rate unchanged at 7.50 per cent on Tuesday, saying the level was in line with its efforts to manage inflation targets for this year and 2016.

The central bank also stood pat on its overnight deposit and lending facility rates, leaving them at 5.50 per cent and 8.00 per cent, respectively.

Analysts in a Reuters poll had unanimously expected Bank Indonesia to keep all interest rates unchanged as it guards against inflation and pontentially more weakness in the rupiah.

Indonesia's annual inflation rate was 7.26 per cent in June, the highest this year, while the rupiah is the second-worst performing currency in emerging Asia after Malaysia's ringgit.

REUTERS