KONTAN.CO.ID - BENGALURU. Bank Indonesia will hold its key interest rate at 5.75% on Thursday and for the rest of this year, suggesting its current tightening cycle is almost certainly over despite inflation remaining high, a Reuters poll of economists forecast. After six consecutive hikes since August 2022, the central bank paused last month and stressed the current level should be sufficient to guide inflation back to its 2%-4% target range. Inflation in Southeast Asia's largest economy hit a seven-year high of 5.95% in September, driven by volatile food and energy prices, but has since slipped to 5.47% in February.
POLL-Bank Indonesia to Hold Rates Steady at 5.75% Through This Year
KONTAN.CO.ID - BENGALURU. Bank Indonesia will hold its key interest rate at 5.75% on Thursday and for the rest of this year, suggesting its current tightening cycle is almost certainly over despite inflation remaining high, a Reuters poll of economists forecast. After six consecutive hikes since August 2022, the central bank paused last month and stressed the current level should be sufficient to guide inflation back to its 2%-4% target range. Inflation in Southeast Asia's largest economy hit a seven-year high of 5.95% in September, driven by volatile food and energy prices, but has since slipped to 5.47% in February.