Bank Indonesia Keeps BI rate On Hold at 7.25%

The Bank Indonesia decided on October 8th to leave the BI Rate unchanged at 7.25 percent after raising it by 150 bps this year.

At the domestic level, the central bank noted that in the third quarter, pressure eased on ailing rupiah, due to lower inflationary pressures and an improvement in the trade balance. The country’s current account deficit is expected to have narrowed in the third quarter, as imports decreased due to weak domestic demand and the weakening of the rupiah.

Bank Indonesia signaled the volatility in the financial markets due to uncertainties about the U.S. Congress agreement on raising the country's debt ceiling and the U. S. government shutdown.  

The central bank also kept the deposit facility rate and the lending facility rate unchanged at 5.5 percent and 7.25 percent, respectively.

Bank Indonesia Keeps BI rate On Hold at 7.25%

Joana Taborda |
10/8/2013 10:56:23 AM