Indonesia to fuel recovery with loose policy as restrictions ease

Welcome relief: A vendor waits for customers along a street in Jakarta as economic activities resume with Covid-19 infections under control in the country. — AFP

JAKARTA: Indonesia’s central bank will likely keep its benchmark interest rate at a record low as it seeks to ensure the economic recovery is firming up.

Bank Indonesia is expected to hold its seven-day reverse repurchase rate at 3.5%, according to all 30 economists surveyed by Bloomberg. With inflation staying below the central bank’s 2%-4% target for the 16th straight month in September, the monetary authority has ample space to keep policy loose while waiting for the growth momentum to strengthen.