Economics

Bank Indonesia Holds Rate as It Focuses on Debt Purchases

  • Policy rate kept at 4% as seen by most analysts in survey
  • Central bank buys government bonds, eases bank liquidity rules
Indonesian rupiah banknotes at a currency exchange in Jakarta, Indonesia.Photographer: Dimas Ardian/Bloomberg
Lock
This article is for subscribers only.

Indonesia’s central bank kept its policy rate unchanged as it uses other measures, like government bond purchases, to help shore up the economy.

Bank Indonesia kept its seven-day reverse repurchase rate at 4% on Tuesday, as predicted by 23 of 25 economists in a Bloomberg survey. Two had expected a 25 basis-point reduction.