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.
