Economics
Indonesia Holds Key Rate on Tame Inflation, Gradual Recovery
- Interest rate kept at 3.75% as seen by most analysts in survey
- Bank Indonesia has sought accommodative stance to spur growth
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Indonesia’s central bank left its key interest rate unchanged at a record low, projecting optimism that the economy is recovering and inflation will remain tame even with new restrictions in place to fight a surge in Covid-19 infections.
Bank Indonesia held the seven-day reverse repurchase rate at 3.75% Thursday, as expected by 28 of 29 economists in a Bloomberg survey. Only one predicted a 25 basis-point cut.