Indonesia unexpectedly holds, thereby ending tightening spree
Economists see room for BI to keep rates at their current level as rupiah depreciation pressures ease
Indonesia’s central bank held rates today (July 22), having rapidly tightened policy in its two previous meetings to battle the depreciation of its currency, which hit a record low in June.
Bank Indonesia (BI) spokesperson Ramdan Denny Prakoso said in a release that the central bank’s board had decided to leave its benchmark lending rate at 5.75% in ongoing efforts to stabilise the rupiah and keep inflation – which was 3.3% at the end of June – within its 1.5–3.5% target range. Prakoso said the
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