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Indonesia keeps rates unchanged
[JAKARTA] Indonesia's central bank kept its benchmark interest rate unchanged on Thursday, as expected, though it reasserted it will defend the exchange rate of the rupiah when needed.
At 2018's final policy review, Bank Indonesia (BI) held the 7-day reverse repurchase rate at 6.00 per cent, as predicted by 20 of 21 analysts in a Reuters poll.
Between May and November, the rate was raised six times by a total of 175 basis points as BI sought to slow capital outflows and put a floor under the rupiah.
BI's other main rates, the deposit facility and lending facility rates, were kept unchanged as well at 5.25 per cent and 6.75 per cent, respectively.
The rupiah has been under pressure for much of this year due to US monetary tightening, the Sino-US trade war and a widening in Indonesia's current account deficit.
Thursday's decision came hours after the Federal Reserve raised US rates for a fourth time this year and signalled more hikes ahead.