Indonesia Holds Key Rate As Expected

(RTTNews) - Indonesia's central bank left its interest rates unchanged for the second straight meeting, on Thursday.

The Board of Governors decided to retain the 7-day reverse repo rate at 5.00 percent. The bank had reduced the rate by a cumulative 100 basis points this year.

The bank said the monetary policy remains accommodative and consistent to maintain inflation within the target range.

The central bank forecast economic growth to reach 5.1 percent this year. For next year, growth is seen in the range of 5.1-5.5 percent.

Inflation is expected to remain low this year, at around 3.1 percent and within the target range of 2-4 percent in 2020.

With growth set to remain weak and the rupiah holding up well, Gareth Leather, an economist at Capital Economics, said further easing is likely in the New Year.