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BI RATE - JAKARTA. Indonesia's central bank held its benchmark interest rate at a record low on Thursday as it tries to continue to support the economy's recovery from the coronavirus pandemic without adding downward pressure on the rupiah currency.
Bank Indonesia (BI) kept the 7-day reverse repurchase rate at 3.50%, where it has been since February, as expected by the majority of economists in a Reuters poll. Its two other main rates were also kept unchanged.
Indonesia's economy grew a bigger-than-expected 7.07% in the second quarter, but some analysts worry coronavirus restrictions imposed in July could cloud the outlook, even though curbs have gradually been eased in August.
"Let me repeat again that all of BI's policies will be pro-growth this year," Governor Perry Warjiyo told a streamed news conference.
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"Monetary policy, with low interest rates and loose liquidity, will be continued."
While BI expects the economic recovery to continue in the second half of the year, supported by progress in the vaccination drive and a reopening of the economy, Warjiyo said the Delta variant and the prospect of U.S. tapering posed risks.
Minutes from the Federal Reserve's July meeting released on Wednesday showed officials largely expect to reduce the U.S. central bank's monthly asset purchases later this year.
