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Indonesia Rate Pause ‘Golden Opportunity Missed’ to Tame Prices

Bank Indonesia kept interest rates unchanged while highlighting rising price pressures, prompting some economists to question its inflation-fighting credentials.

The central bank left its benchmark reference rate at 6.75 percent yesterday, a decision predicted by 10 of 17 economists in a Bloomberg News survey, with the rest forecasting a quarter percentage-point increase. A measure of price gains excluding volatile items such as food, so-called core inflation, is starting to accelerate, the central bank said.