Bank Indonesia Leaves Rates on Hold in January


In its January 9th meeting, Bank Indonesia decided to leave the benchmark interest rate unchanged at 7.5 percent, as widely expected. The lending and deposit facility rates were also left on hold at 7.50 percent and 5.75 percent, respectively.

The Board of Governors of Bank Indonesia said the current policy stance is consistent with the inflation target (4.5 ± 1% to 2014 and 4.0 ± 1% to 2015).  Annual inflation was 8.38 percent in 2013 compared with 4.29 percent in 2012, mainly due to fuel subsidy cuts.

The Bank also said it will continue to strengthen monetary and macroprudential policy mix and it will coordinate with the government to control the inflation and the current account deficit.

Bank Indonesia Leaves Rates on Hold in January


Joana Taborda | joana.taborda@tradingeconomics.com
1/9/2014 10:52:36 AM