Indonesia holds interest rate steady amid price pressure

By：Xinhua Update：2017-04-21

The Indonesian central bank on Thursday kept its benchmark interest rate unchanged as inflation pressures rises amid threat of capital outflows.

Board of Governor's meeting decided to hold seven-day reverse repo rate at 4.75 percent, spokesman of Bank Indonesia Tirta Sagara said.

The meeting also kept deposit facility rate and lending facility rate respectively at 4.0.percent and 5.5.percent, the spokesman said.

"The decision is in line with the central bank's effort to keep macroeconomic stability and financial stability," he said.

Capital inflows grew 35 percent to 81 trillion rupiah (6.774 billion U.S. dollars) from January to the second weeks of April on the yearly basis, the bank said.

Indonesia annual inflation eased to 3.61 percent in March, with experts saying it will likely rise ahead of the holy fasting month of Ramadhan at the end of May.