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MNI BRIEF: Tame Inflation Sees BI Keep Rates on Hold

MNI (Sydney)
(MNI) Sydney

Indonesia’s central bank left its benchmark reverse repo rate unchanged at 3.5% Thursday, citing relatively benign inflation. The move was largely expected by financial markets.

CPI inflation came in at 3.55%, inside Bank Indonesia’s 2% to $4 target range and was the key driver for the decision by the board of governors, who also left the overnight deposit and lending facility rates unchanged at 2.75% and 4.25%.

The bank is facing pressure over the value of the rupiah, however, which weakened again Thursday to 14,869 against the USD, continuing a decline which has seen a 4.5% fall this year, and 2% this month.

MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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