JAKARTA Dec 15 Indonesia's central bank on
Thursday held its benchmark interest rate steady, as expected,
and said it will remain vigilant on the risks that capital flows
into the country can be reversed.
Bank Indonesia (BI) kept the 7-day reverse repurchase rate
at 4.75 percent. All 23 analysts in a Reuters poll
had expected BI, ending a policy meeting shortly after the
Federal Reserve hiked U.S. rates, to hold its benchmark.
BI also held steady the two other rates, which act as the
floor and ceiling of the overnight interbank money market, at
4.00 percent and 5.50 percent, respectively.
The central bank trimmed its benchmark six times during
January-October by a total of 150 basis points, trying to get
banks to lend more and the economy to grow faster.
BI this year switched its main policy rate to enhance the
effect of monetary easing on market rates. Until August, BI's
main policy rate was the 12-month reference rate.
Announcement date Rate (percent)*
* All announcements before Aug. 19 were during a transition
period for the new benchmark
(Reporting by Nilufar Rizki, Hidayat Setiaji and Gayatri
Suroyo; Editing by Richard Borsuk)