Central Banks
Bank Indonesia to Hold Interest Rates Steady With Currency Under Pressure
- Majority of economists see key interest rate to stay at 5.75%
- Indonesia in tight spot as Fed tightens further, rupiah drops
Bank Indonesia has said it will focus monetary policy on exchange rate stability.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Indonesia’s central bank is expected to leave the benchmark interest rate unchanged as jitters over steeper US rates turn up the pressure on the rupiah.
Of the 30 economists surveyed by Bloomberg, 28 projected the seven-day reverse repurchase rate will remain steady at 5.75% on Thursday. Two expected a 25 basis-point increase — the first such prediction since the central bank last raised the policy rate in January.