Indonesia's central bank holds key rate at 4.75%

[JAKARTA] Indonesia's central bank on Thursday left its benchmark policy rate unchanged for a fourth consecutive policy meeting, as expected, saying the current level still supports economic growth.

Bank Indonesia (BI) kept the 7-day reverse repurchase rate at 4.75 per cent, where it has been since October. All 20 analysts in a Reuters poll had predicted a hold on Thursday.

BI also left its two other rates, which act as the floor and ceiling of the overnight interbank money market , at four per cent and 5.50 per cent, respectively.

Last year, BI cut its benchmark six times totalling 150 basis points to try to spur economic growth.

It also switched its main policy rate to enhance the effect of rate cuts on market rates. Until August 2016, the main rate was the 12-month reference rate.

REUTERS