Indonesia Leaves Monetary Policy Unchanged

Indonesia’s central bank left its key policy rate steady at 7.75 percent in December after 25bps hike last month despite rise in inflation.

The lending facility rate and the deposit facility rate also remained unchanged at 8.0 percent and 5.75 percent respectively.

In November, the central bank raised the benchmark interest rate by 25 bps to 7.75 percent, aiming to contain inflationary pressures after the government raised fuel prices more than 30 percent. 

In November, annual inflation picked up to 6.23 percent from 4.83 percent in October after the fuel price increase.
Policymakers target inflation at 3.5 percent to 5.5 percent in 2014.

Indonesia Leaves Monetary Policy Unchanged

Joana Taborda |
12/11/2014 11:54:36 AM