JAKARTA: Indonesia's central bank kept its benchmark interest rate unchanged on Thursday, as expected, saying its previous cuts and changes in macroprudential rules were sufficient to support economic growth.
Bank Indonesia (BI) kept the 7-day reverse repurchase rate at 4.25 percent, where it has been since September last year, as predicted by all 14 analysts in a Reuters poll.
Its two other main rates, which act as the floor and ceiling of the overnight interbank money market, were also left unchanged at 3.75 percent and 5.00 percent, respectively.
Indonesia's annual inflation rate in March was 3.40 percent, inside BI's target range of 2.5-4.5 percent for 2018.
The central bank slashed the key rate by 200 basis points in 2016 and 2017 in a bid to accelerate loan and economic growth, but the effect the cuts had on bank lending was limited.
The last time BI raised its benchmark rate was in November 2014.
Copyright Reuters, 2018
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