Economics
Indonesia Stays on Hold as Fed Move Stokes Currency Fears
- Central bank decision forecast by 21 out of 22 economists
- Vice president had been calling for cut to boost growth
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Indonesia’s central bank kept its benchmark interest rate unchanged for a 10th month, resisting pressure to cut amid concern the rupiah will weaken further following the Federal Reserve’s decision to increase borrowing costs.
Governor Agus Martowardojo and his board kept the reference rate at 7.5 percent, Bank Indonesia said in Jakarta on Thursday, as forecast by 21 of 22 economists surveyed by Bloomberg News. The authority also held the rate it pays lenders on overnight deposits, known as the Fasbi, at 5.5 percent.