Indonesia: Central Bank keeps interest rate unchanged at 5.75%
September 13, 2012
At its 13 September monetary policy meeting, the Central Bank left its BI rate unchanged at a record low 5.75% for the seventh 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 worsening global economic growth "may put pressure on the current account balance". That said, the Bank reassured that it expects Indonesia's economy to maintain momentum in the short term. Regarding price developments, policy makers underlined that inflation remains benign and is expected to stay within the Bank's target range of 4.5% plus/minus 1.0% going forward.