Indonesia: Central Bank holds rate for ninth straight month
November 8, 2012
At its 8 November monetary policy meeting, the Central Bank left its BI rate unchanged at a record-low 5.75% for the ninth 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 noted that global economic growth remains weak and continues to be overshadowed by uncertainty. On the other hand, the Bank reassured that Indonesia's economy "remains sound, although slowed slightly" and that GDP growth is expected to reach 6.3% in 2012 and to range between 6.3% and 6.7% in 2013. 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.