Bank Indonesia holds key interest rate steady, trims 2017 growth forecast

Jakarta

INDONESIA'S central bank, citing "escalating" global economic uncertainty, on Thursday held its key interest rate steady as expected and trimmed its growth forecast for 2017.

Bank Indonesia (BI) maintained its benchmark interest rate at 4.75 per cent, as forecast by 18 out of 19 analysts in a Reuters poll.

Analysts had said market volatility following Donald Trump's victory meant BI could not cut its benchmark for a seventh time this year.

The rate hold "is in line with BI's cautiousness in responding to the escalating uncertainty in the global financial market after the…