KONTAN.CO.ID - JAKARTA. Indonesia's central bank held its benchmark rate at a record low on Thursday as it sought to keep monetary policy accommodative amid a rise in COVID-19 cases and maintain stability in the rupiah currency. Bank Indonesia (BI) kept the benchmark 7-day reverse repurchase rate at 3.50% for a fourth straight meeting, as expected by all 26 economists in a Reuters poll. Its two other main rates were also left unchanged. Governor Perry Warjiyo repeated a pledge to keep interest rates low and liquidity abundant until inflation rises, which he expects to happen in early 2022 at the earliest. Inflation rose to 1.68% in May but remained below BI's target of 2% to 4%.
Indonesia central bank holds key rate at record low amid rupiah, virus worries
KONTAN.CO.ID - JAKARTA. Indonesia's central bank held its benchmark rate at a record low on Thursday as it sought to keep monetary policy accommodative amid a rise in COVID-19 cases and maintain stability in the rupiah currency. Bank Indonesia (BI) kept the benchmark 7-day reverse repurchase rate at 3.50% for a fourth straight meeting, as expected by all 26 economists in a Reuters poll. Its two other main rates were also left unchanged. Governor Perry Warjiyo repeated a pledge to keep interest rates low and liquidity abundant until inflation rises, which he expects to happen in early 2022 at the earliest. Inflation rose to 1.68% in May but remained below BI's target of 2% to 4%.