Indonesia c bank holds rate at 5.75% as expected
December 11, 2012 The Business Times
Bank Indonesia kept its benchmark rate on hold as expected on Tuesday, at a record low of 5.75 per cent for the 11th consecutive month, in a bid to maintain solid growth at a time when inflation has slowed.
All 17 economists polled by Reuters prior to the decision expected the central bank to hold the policy rate steady. Some instead forecast that the central bank would increase the deposit facility rate to help the ailing rupiah, but Bank Indonesia also left that rate on hold.
The annual consumer price index in November eased to 4.32 per cent from October's 4.61 per cent, but there was a record trade deficit in October - US$1.54 billion - due to rising imports and weak exports.
Prolonged global uncertainties are expected to keep hurting the country's exports next year. The government has trimmed its forecast of 6.8 per cent economic growth for 2013 to between 6.6 and 6.8 per cent, deputy finance minister Anny Ratnawati said.
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Full nameRepublic of Indonesia