Indonesia Leaves Monetary Policy Unchanged


At its September 11th, 2014 meeting, Indonesia’s central bank left the benchmark interest rate on hold at 7.5 percent for the tenth straight meeting. The lending facility rate and the deposit facility rate were also left on hold at 7.5 percent and 5.75 percent, respectively.

Excerpt from the statement by the Bank Indonesia:

Such policy is consistent with efforts to control inflation towards its target corridor of 4.5±1 percent in 2014 and 4.0±1 percent in 2015, as well as to reduce the current account deficit to a more sustainable level. Bank Indonesia perceives that the economic rebalancing process towards a more balanced economy is still continued, underpinned by preserved macroeconomic stability. Looking ahead, there remains several risks that demands vigilance that may cause disruptions of macroeconomic and financial system stability. To that end, Bank Indonesia will continue to strengthen its monetary and macroprudential policy mix, along with other policies to reinforce the structure of the domestic economy. Bank Indonesia will also enhance policy coordination with the government to control inflation and reduce the current account deficit in order to ensure that the economic rebalancing process will continue unimpeded, by maintaining a sustainable economic growth. 

Indonesia Leaves Monetary Policy Unchanged


Bank Indonesia | Joana Taborda | joana.taborda@tradingeconomics.com
9/11/2014 10:50:57 AM