Indonesia holds rates

After two 25 basis point cuts in as many months, Bank Indonesia decided today to hold its benchmark interest rates at 8.25%

The central bank said that it held rates steady due to inflationary pressures.

"This decision was taken after an evaluation of the outlook for achieving the 5% to 7% and 4% to 6% inflation target for 2007 and 2008 and of the performance and prospects of the national economy," said Budi Mulya, a director at the office of the governor.

The central bank has said it expect in