KNews.id-Indonesia’s central bank kept its key interest rate unchanged on Thursday, pausing after six consecutive hikes and stressing that the current level should be sufficient to guide inflation back to target, while also revising up its economic growth outlook.
Bank Indonesia (BI) left the benchmark 7-day reverse repurchase rate at 5.75%, as expected by the majority of economists in a Reuters poll.
BI repeated a line first published in its January policy statement that the current benchmark level was adequate to achieve its price stability targets.
The stance highlights a growing policy divide between countries where inflation is slowly easing and those where prices remain elevated, with central banks in many major economies and some neighbouring Asian countries like the Philippines continuing with their tightening.
In the Philippines, where January inflation accelerated to a 14-year high of 8.75%, its central bank raised the benchmark interest rate by 50 basis points to 6.0% on Thursday and flagged its readiness to do more.
