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Indonesia holds key rate at 7.50 pct
October 15, 2015 / 10:49 AM / 2 years ago

Indonesia holds key rate at 7.50 pct

JAKARTA, Oct 15 (Reuters) - Indonesia’s central bank held its benchmark interest rate steady on Thursday, a widely-expected decision reflecting pressures preventing it from making a cut to try to spur faster economic growth.

A Bank Indonesia (BI) spokesman, however, said that pressure on macroeconomic stability was receding, providing room for monetary policy easing in the future.

All analysts in a Reuters poll had expected the central bank to keep the policy rate at 7.50 percent, where it has been since February.

In their view, the need to support the weak rupiah has been a key factor blocking BI from cutting interest rates to help the economy, now growing at its slowest pace in six years.

At times, the rupiah has been volatile this year. After a prolonged fall, it strengthened more than 9 percent last week. (Reporting by Hidayat Setiaji and Nilufar Rizki; Writing by Gayatri Suroyo; Editing by Randy Fabi and Richard Borsuk)

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