Economics
Bank Indonesia Saves Rate Bullets for Future Fed Tightening
- Most economists in survey predicted rate would stay at 5.75%
- Investors pumped $1.4b into government bonds in third quarter
The Bank Indonesia headquarters in Jakarta
Photographer: Dimas Ardian/Bloomberg
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Indonesia’s central bank left its benchmark interest rate unchanged on Tuesday, opting to save some of its policy ammunition for possible further market volatility triggered by higher U.S. rates.
The seven-day reverse repurchase rate was held at 5.75 percent, in line with the forecasts of 21 of the 30 economists surveyed by Bloomberg. Senior Deputy Governor Mirza Adityaswara, who announced the decision at a briefing in Jakarta, said further action will depend on the outlook for the current-account deficit, inflation and the exchange rate.