Financial News: Indonesia Central Bank Maintains Status Quo

Indonesia Central Bank Maintains Status Quo

12/18/2024 - 08:29:00 (RTTNews)

(RTTNews) - Indonesia's central bank left its benchmark interest rate unchanged on Wednesday as policymakers were more concerned about the exchange rate of rupiah.

The Board of Governors of Bank Indonesia, headed by Perry Warjiyo, decided to maintain the seven-day reverse repo rate at 6.00 percent.

The interest rate has been left on hold for three consecutive meetings.

The governor said the focus of monetary policy is directed towards strengthening the stability of the rupiah amid escalating geopolitical tensions and the direction of US policy.

In November, inflation fell to 1.5 percent, which was at the lower end of the 1.5-3.5 percent target range. The bank today said it will maintain inflation within the band in 2025, while continuing to support economic growth.

Economists at Capital Economics said the rupiah is a greater concern for the central bank. Given the uncertainty surrounding Trump's policies, further falls in the rupiah are likely, they noted.

The bank is unlikely to resume its easing cycle until the second half of next year at the earliest, economists said.

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