Indonesia central bank holds key rate at 4.25%, as expected

Indonesia central bank holds key rate at 4.25%, as expected

Logo of Indonesia's central bank, Bank Indonesia, as seen in Jakarta, Indonesia January 19, 2017. (Reuters photo)
Logo of Indonesia's central bank, Bank Indonesia, as seen in Jakarta, Indonesia January 19, 2017. (Reuters photo)

JAKARTA: Indonesia's central bank kept its key interest rate unchanged on Thursday, as expected, as it aims to maintain financial stability following the much-anticipated rate hike by US Federal Reserve.

Bank Indonesia (BI) held the seven-day reverse repurchase rate at 4.25% for a third straight month.

The deposit facility and lending facility rate were also kept unchanged, at 3.50% and 5.00% respectively.

Thursday's rate decision "is consistent with efforts to maintain macroeconomic stability and is sufficient to support domestic economic recovery," BI said.

All 21 analysts in a Reuters poll had predicted Thursday's rate hold.


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