Indonesia: Central Bank holds rate for 13th straight month
March 7, 2013
At its 7 March monetary policy meeting, the Central Bank left its BI rate unchanged at a record-low 5.75% for the 13th straight month, in a move that was widely expected by the market.
The Central Bank stated that the economy shows a "good performance", supported by robust domestic demand. Moreover, the Bank said that it expects the current account deficit to narrow in 2013 amid rising exports and an improvement in commodity prices. According to the Bank, "the strengthening of monetary and macroprudential policy mix, as well as solid coordination with the Government, will be able to achieve the inflation target and promote external balance in order to support sustainable economic growth".
FocusEconomics Consensus Forecast panellists see the BI rate at 5.99% by the end of 2013. For 2014, panellists expect the BI rate to rise to 6.18%.