Economics

Indonesia Holds Key Rate Steady, Will Focus on Liquidity

Benchmark rate maintained at 3.5%, as all in survey expected
Central bank reiterates 2021 growth and inflation forecasts

Shoppers look at shoes and sandals a market in Jakarta, Indonesia.
Photographer: Dimas Ardian/Bloomberg

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By Grace Sihombing and Claire Jiao

May 25, 2021 at 7:30 AM UTC

Updated on

May 25, 2021 at 8:55 AM UTC

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Indonesia’s central bank left its key interest rate unchanged for a third straight month, pledging to rely primarily on liquidity tools amid signs of a tentative recovery in Southeast Asia’s largest economy.