Economic news

Indonesia CB Holds Policy Rate at Record Low, as Expected

JAKARTA, May 25 (Reuters) - Indonesia’s central bank left its benchmark policy rate at a record low on Tuesday, seeking to maintain support for Southeast Asia’s biggest economy while ensuring stability in financial markets amid the risk of outflows.

Bank Indonesia (BI) kept the 7-day reverse repurchase rate at 3.50%, where it has been since February, as expected in a Reuters poll of 23 economists.

The central bank also left the overnight deposit facility and lending facility rates unchanged at 2.75% and 4.25%, respectively.

BI has slashed interest rates by a total of 150 basis points, pumped more than $55 billion of liquidity into the financial system and relaxed lending rules since 2020 to help the economy recover from the COVID-19 pandemic.

(Reporting by Gayatri Suroyo and Fransiska Nangoy Editing by Ed Davies and Jacqueline Wong)

Source: Reuters


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