Indonesia's central bank seen standing pat on rates for now: poll
[JAKARTA] Indonesia's central bank will keep its benchmark interest rate unchanged at a two-day policy meeting that ends on Thursday, most respondents in a Reuters poll said.
Thirteen of 17 economists predicted Bank Indonesia (BI) will hold the 7-day reverse repurchase rate at 5 per cent. The other four forecast a 25 basis point cut.
Out of seven respondents giving a year-end view, five expected the benchmark to be 5 per cent then, and two projected 4.75 per cent.
BI has cut its benchmark five times this year by a total of 125 basis points in a bid to get banks to lend more and boost economic growth.
But loan growth has remained sluggish. In August, annual expansion was 6.83 per cent, the slowest pace since Nov 2009.
After BI's last rate cut on Sept 22, Governor Agus Martowardojo said the central bank was still in an easing mode that would continue until early 2017.
Indonesia's annual inflation rate rose slightly in September to 3.07 per cent, near the bottom of BI's 3-5 per cent target range.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Slowing global economy to mean smaller revenue bump in Australian budget
Emerging-market optimism dashed by Fed as currencies, bonds sink
France's Macron set to press China's Xi on trade, Ukraine
Israeli Cabinet votes to shut down Al Jazeera’s local operations
Ukraine eases some wartime capital controls for businesses
Labour mayor wins cap triumphant election run for Starmer