Economics
Bank Indonesia Holds Rates as Governor Defends Independence
- Almost all economists in survey predicted rate to stay at 4%
- Rupiah remains Asia’s worst-performing currency in 2020
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Indonesia’s central bank left its benchmark interest rate unchanged for a second straight month, with Governor Perry Warjiyo defending the bank’s independence amid proposals to change its mandate.
Bank Indonesia held the seven-day reverse repurchase rate at 4% on Thursday, as expected by 27 of 29 economists in a Bloomberg survey. The other two predicted a 25 basis-point cut following 100 basis points of reductions so far this year already.