Indonesia holds benchmark rate in response to global uncertainty

[JAKARTA] Indonesia's central bank on Thursday held its benchmark interest rate steady, as expected, saying the level was in response to global uncertainty after the results of the US election.

Bank Indonesia (BI) kept the 7-day reverse repurchase rate at 4.75 per cent.

Consequently, its two other main rates that act as the floor and ceiling of the overnight interbank money market were also held at 4.00 per cent and 5.50 per cent, respectively.

Eighteen of 19 analysts in a Reuters poll had expected BI to keep the benchmark unchanged. The other one predicted a cut.

BI has cut its old and current benchmark rates by a total of 150 basis points this year to try to get the economy to grow faster. Until August, BI's main policy rate was the 12-month reference rate.

The benchmark change was made to enhance the effect of monetary easing on market rates.

REUTERS