Economics

Indonesia Keeps Rates Steady as Inflation Pressures Increase

  • Prices rose at the fastest pace in more than a year in April
  • All but one of 25 economists surveyed forecast bank would hold

Vendors pack jackfruits at the Pasar Induk Kramat Jati market in Jakarta, Indonesia.

Photographer: Dimas Ardian/Bloomberg
Lock
This article is for subscribers only.

Indonesia’s central bank left its benchmark interest rate unchanged for a seventh month as inflation heads closer to the top of the target band.

Governor Agus Martowardojo and his held the seven-day reverse repurchase rate at 4.75 percent on Thursday, as forecast by all but one of the 25 economists surveyed by Bloomberg. The bank went on a cutting spree last year as it lowered rates six times, but has been on hold since the last move in October.