Indonesia Monetary Policy Unchanged in December

At its December 12th meeting, Bank of Indonesia decided to leave the benchmark interest rate unchanged at 7.5 percent, its highest level since 2009. The Central Bank said its decision was consistent with efforts to lower the annual inflation rate to 3.5-5.5 percent in 2014.

Since last May, Bank Indonesia has raised its benchmark interest rate by 1.75 percentage point, aiming to reduce the current account deficit that has weighed on the rupiah.

The Central Bank expects 2013 inflation to be below its target of 9-9.8 percent. In November, the annual consumer price index accelerated to 8.37 percent, from 8.32 percent in October. 

The lending facility and deposit facility rates were also maintained at 7.5 percent and 5.75 percent respectively.

Indonesia Monetary Policy Unchanged in December

Joana Taborda |
12/12/2013 9:56:12 AM