Indonesia: Central Bank holds rate for 10th straight month
December 11, 2012
At its 11 December monetary policy meeting, the Central Bank left its BI rate unchanged at a record-low 5.75% for the 10th 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 has slowed in 2012 and that future developments remain overshadowed by a recession in the Euro area and concerns over the so-called fiscal cliff in the United States. On the other hand, the Bank reassured that Indonesia's economy remains sound and that GDP growth is expected to have reached 6.3% in 2012.
Regarding price developments, policymakers underlined that inflation remains contained and is expected to stay within the Bank's target range of 4.5% plus/minus 1.0% going forward.