Indonesia seen holding policy rates

Better outlook: An employee walks past a mock one thousand rupiah coin on display at Bank Indonesia’s headquarters in Jakarta. South-East Asia’s largest economy grew less than expected in the first quarter, but many economists believe full-year growth can top 5 and end five years of slowdown. — Reuters

JAKARTA: Indonesia’s central bank is expected to keep its key rates unchanged after a two-day policy meeting that ends today, despite disappointing economic growth, as the inflation rate is likely to increase up ahead of the Muslim fasting month.

Many analysts also note Bank Indonesia (BI) may want to avoid confusion while transitioning to a use a new instrument as its main policy rate.