Bank Indonesia holds rates again to defend currency
Weak rupiah to delay rate cuts as ratings downgrade weighs on investor appetite, analyst says
Bank Indonesia (BI) has held rates as weakness of the rupiah lingers, after a major rating agency downgraded the country’s outlook amid concerns over central bank independence and other governance issues.
In a statement on February 19, BI spokesperson Ramdan Denny Prakoso said the bank would hold its benchmark lending rate at 4.75%, the deposit facility rate at 3.75% and the lending facility rate at 5.5%.
“The decision is consistent with the current policy focus on efforts to strengthen rupiah
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