Jakarta

INDONESIA's central bank kept its main interest rate unchanged for a second month, refraining from easing policy as inflationary pressures reappear.

Governor Agus Martowardojo and his board kept the reference rate at 7.5 per cent, Bank Indonesia said in Jakarta on Tuesday. Twenty out of 21 economists surveyed by Bloomberg News had predicted the decision, while one forecast a cut. The authority said that it plans macroprudential policies that are more accommodative, including incentives for bank lending.