Indonesia's Central Bank Governor Perry Warjiyo arrives for a media briefing at Bank Indonesia headquarters in Jakarta, Indonesia. - Reuters
JAKARTA: Indonesia's central bank held interest rates steady on Wednesday, pausing its easing cycle as expected by analysts, saying policy settings remained consistent with efforts to keep inflation within target and support economic growth.
The benchmark 7-day reverse repurchase rate was kept at 5.75%, as expected by 26 out of 35 economists polled by Reuters. The remaining nine had predicted a cut.
Bank Indonesia also left steady the overnight deposit facility and lending facility rates at 5.00% and 6.50%, respectively.
Governor Perry Warjiyo said BI will consider the rupiah exchange rate, inflation and economic growth prospects in assessing for the room for future interest rate cuts.
Wednesday's decision followed a rate cut in January that markets had not expected.
The central bank has said the need for stability in the rupiah is an important factor in its deliberations.
Earlier this month, the currency fell to its weakest against the U.S. dollar since June last year, hit by global trade tensions and a changing outlook for U.S. interest rates.
Growth in Southeast Asia's largest economy has been stuck around 5% in the past decade, excluding the pandemic. Growth was 5.03% last year, and President Prabowo Subianto has pledged to lift it to 8% before his term ends in 2029.
Inflation eased to 0.76% in January, the lowest rate since 2000 and below BI's target range, helped by a government discount on electricity tariffs. - Reuters
