20 Apr '17, 11am

Indonesia central bank holds interest rate as inflation concerns loom - The Straits Times

JAKARTA (REUTERS, BLOOMBERG) - The current policy stance of Indonesia's central bank is tilted toward neutral, a senior official said after Bank Indonesia (BI) decided to keep its key policy rates unchanged on Thursday. Governor Agus Martowardojo and his board held the seven-day reverse repurchase rate at 4.75 per cent. The bank lowered rates six times last year, with the last move in October. "We remain neutral, with a position of bias towards neutral," Dody Budy Waluyo, BI's executive director of economic and monetary policy, told a news conference following the rate decision. BI said Indonesia's economic growth in the first quarter was likely slower than it initially expected, pointing to declining retail sales. While consumer prices rose at a slower pace than economists predicted in March, inflation is set to pick up this year. First quarter growth was below expectatio...

Full article: http://www.straitstimes.com/business/indonesia-central-ba...

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