JAKARTA: Indonesia's central bank kept its policy rates unchanged on Wednesday, as expected, saying current levels were consistent with efforts to keep the rupiah currency stable and ensure inflation remains within target.
Bank Indonesia (BI) left its benchmark 7-day reverse repurchase rate steady at 6.00 per cent, where it has been since October, as widely expected in a Reuters poll. Its two other main rates were also kept unchanged.
Growth in Southeast Asia's largest economy fell slightly last year amid falling commodity prices, though at 5.1 per cent, it remained one of the fastest among countries in the Group of 20 major economies.
Some economists expected economic growth to remain around that level, as last week's presidential and parliamentary elections and the expected transition of power in October affect investment decisions.
Markets had cheered the victory of Defence Minister Prabowo Subianto, after so-called quick ballot counts by independent pollsters showed he had won the presidency with nearly 60 per cent of votes.
In a press conference, Governor Perry Warjiyo said the main rate is enough to manage inflation, while other tools are geared to support growth.
Inflation in Indonesia has stayed within BI's target range since the middle of last year, with the central bank's 250 basis points rate hiking cycle between August 2022 to October 2023 keeping price pressures in check.
The rupiah was largely unchanged before the rate announcement on Wednesday, but strengthened slightly by 0.1 per cent following the decision.
BI kept its growth forecast for 2024 at a range of 4.7 per cent to 5.5 per cent. - Reuters