Indonesia: Central Bank holds rate for 11th straight month
January 10, 2013
At its 10 January monetary policy meeting, the Central Bank left its BI rate unchanged at a record-low 5.75% for the 11th straight month, in a move that was widely expected by the market.
The Central Bank stressed that global economic growth has slowed in 2012 and that future developments remain overshadowed by the prolonged debt crisis in the Euro area and slowing growth amongst major emerging economies. However, the Bank reassured that Indonesia's economic growth continues to be robust and forecasts GDP growth to be between 6.3% and 6.8% in 2013 and between 6.7% and 7.2% in 2014.
Regarding price developments, policymakers underlined that inflation is under control and is expected to stay within the Bank's target range of 4.5% plus/minus 1.0% going forward.