Outlier Indonesia Holds Rate as It Sees Inflation Manageable
- Bank Indonesia keeps key interest rate kept unchanged at 3.5%
- Sees upside risks to inflation, but pressures are manageable
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Indonesia’s central bank held its benchmark interest rate at a record low again, saying inflation remains manageable as it cemented its place as an outlier on monetary policy.
Bank Indonesia left the seven-day reverse repurchase rate unchanged at 3.5% on Thursday, as predicted by 24 of 33 economists surveyed by Bloomberg. The rest expected policy makers to kick off the monetary tightening cycle with a 25 basis-point hike.