Indonesian rates on hold

The Central Bank of Indonesia yesterday left interest rates unchanged at 12.75% for a second month, as economic growth slowed down.

Six interest rate increases since July have helped the rupiah recover from a four-year low on August 30 last year amid concerns that rising oil prices would increase the cost of government fuel subsidies and lead to a widening of the budget deficit.

The rate hikes and the relaxation of the government's fuel subsidy scheme have lead to a recovery of the rupiah and