Indonesia central bank keeps policy rate steady to support FX stability

May 19, 2020, 02.50 PM
Indonesia central bank keeps policy rate steady to support FX stability

ILUSTRASI. Gubernur Bank Indonesia Perry Warjiyo


Source: ReutersEditor: Anna Suci Perwitasari

BI RATE - JAKARTA.  Indonesia's central bank kept its key interest rate unchanged on Tuesday (19/5), against expectations for a cut, saying the current level was in line with efforts to ensure market stability though stressed there still remained room for a reduction.

Bank Indonesia (BI) left the benchmark 7-day reverse repurchase rate unchanged at 4.50%, as forecast by 10 of 26 analysts in a Reuters poll. The rest had predicted a 25-basis point cut.

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The central bank also held its overnight deposit facility and lending facility rates steady at 3.75% and 5.25%, respectively.

BI has cut the rates twice this year to stimulate economic activity hurt by the coronavirus pandemic, on top of four reductions in 2019.


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