Economics
Bank Indonesia Stays Hawkish as It Keeps Key Rate on Hold
- Most economists in survey predicted rate would stay at 5.25%
- Bond market saw inflows this month after investor sell-off
Photographer: Graham Crouch/Bloomberg
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Indonesia’s central bank left its benchmark interest rate unchanged after three hikes in a row helped to stabilize the currency in Southeast Asia’s biggest economy.
The seven-day reverse repurchase rate was held at 5.25 percent on Thursday, in line with the forecasts of 25 of the 28 economists surveyed by Bloomberg. Governor Perry Warjiyo said the policy stance remains “hawkish” with the central bank’s focus on economic stability.