Indonesia Holds Key Rate as Inflation, Rupiah Pressures Subside

Bank Indonesia held its benchmark interest rate as cooling inflation and a stronger rupiah allowed a pause in one of Southeast Asia’s most aggressive tightening cycles post-pandemic.

The central bank left its seven-day reverse repurchase rate unchanged at 5.75% on Thursday, as seen by 26 of 28 economists in a Bloomberg survey. It’s the central bank’s first hold since July, before it embarked on a 225 basis-points of rate hikes to get a grip on surging food and fuel prices.