Indonesia holds rates on solid growth and stronger rupiah

Bank Indonesia kept rates unchanged today (December 20), having made six rate increases since May 2018.

The central bank left the seven-day reverse repo rate at 6%, the deposit facility at 5.25%, and the lending facility at 6.75%.

In 2018, rate-setters increased the key rate by 175 basis points in order to stem the rupiah’s fall and resist capital outflows. The South-east Asian economy has responded positively to this policy.

“The rupiah appreciated 6.29% in November 2018 as an influx of