Indonesia: Central Bank holds rate for 12th straight month
February 12, 2013
At its 12 February monetary policy meeting, the Central Bank left its BI rate unchanged at a record-low 5.75% for the 12th straight month, in a move that was widely expected by the market.
The Central Bank stated that the economy remains strong despite global headwinds, and continues to be underpinned by robust domestic demand. That said, the Bank highlighted its concern regarding the increasing current account deficit and reaffirmed that "in the future, Bank Indonesia will strengthen the policy mix to promote the external balance adjustment so that the current account deficit would be at a sustainable level".
Regarding price developments, policymakers underlined that inflation is expected to remain contained going forward and to stay within the Bank's target range of 4.5% plus/minus 1.0% in both 2013 and 2014.