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