Central Banks
Bank Indonesia Extends Rate Pause as Focus Turns to Growth
- Inflation seen returning to 2%-4% target earlier than expected
- Economists see BI’s next move being an interest rate cut
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Bank Indonesia kept its benchmark interest rate unchanged for a third straight month on the back of a stronger currency and fading price pressures.
The seven-day reverse repurchase rate was kept at 5.75% on Tuesday, as expected by all 30 economists in a Bloomberg survey. It has stood at that level since January, after the central bank delivered 225 basis points in rate hikes over six months.