Economics
Indonesia Surprises by Holding Key Rate Amid Volatile Market
- Most economists in Bloomberg survey predicted 25 bps rate cut
- Indonesian economy seen slowing as virus takes heavy toll
The Bank Indonesia headquarters stand in Jakarta.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Indonesia’s central bank unexpectedly left its key interest rate unchanged for a second month to bolster the currency in the face of a flagging economy and volatile financial markets.
Bank Indonesia held its seven-day reverse repurchase rate steady at 4.5%, following rate cuts in February and March. Only six of 25 economists expected the bank to stay put Tuesday, with the rest predicting a 25 basis-point cut.