Indonesia central bank keeps rates unchanged, as expected
While the decision may provide short-term relief, it underscores broader economic vulnerabilities if the rupiah continues to weaken, say economists
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[JAKARTA] Indonesia’s central bank maintained its interest rate at 6.25 per cent on Thursday (Jun 20), while assuring the market it would continue its efforts to stabilise the rupiah, which has weakened to its lowest level in four years.
Bank Indonesia’s (BI) decision was in line with the expectations of economists polled by Reuters, amid mounting concerns that the declining currency value is adding pressure to inflation and foreign debt repayment.
The central bank also left its deposit and lending benchmarks unchanged at 5.5 per cent and 7 per cent, respectively.
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