Indonesia Keeps Rates Steady

At its July 10th, 2014 meeting, Bank Indonesia left the benchmark interest rate on hold at 7.5 percent, as the current policy stance remains appropriate to steer inflation to the target range and lower the current account deficit.

The deposit facility and the lending facility rate were also left unchanged at 5.75 percent and 7.50 percent, respectively.

The central bank targets the inflation rate at 4.5 percent plus or minus 1 percent for 2014 and 4 percent plus or minus 1 percent for 2015. In June, the inflation rate slowed to 6.9 percent, the lowest rate in twelve months.

Later in July, the central bank Governor said that the current account deficit could reach 4 percent of the GDP in the second quarter of this year. In 2013, the country’s current account gap widened to 3.3 percent of the GDP, due to a falling rupiah. 

Indonesia Keeps Rates Steady

Joana Taborda |
7/10/2014 11:20:21 AM