Indonesia: Central Bank keeps interest rate unchanged at 5.75%
October 11, 2012
At its 11 October monetary policy meeting, the Central Bank left its BI rate unchanged at a record low 5.75% for the eighth straight month, in a move that was widely expected by the market. Bank Indonesia upheld its decision by stating that the current policy rate is consistent with inflation forecasts. The Central Bank stressed that global economic growth remains weak and continues to be mired in uncertainty. That said, the Bank reassured that Indonesia's economy "remains sound" and that GDP growth is expected at 6.1%-6.5% in 2012 and 6.3%-6.7% in 2013. Regarding price developments, policy makers underlined that inflation remains subdued and is expected to stay within the Bank's target range of 4.5% plus/minus 1.0% going forward.