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Indonesian central bank keeps reference rate unchanged at 7.50 percent

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(Globalpost/GlobalPost)

Indonesian central bank keeps reference rate unchanged at 7.50 percent

JAKARTA, Dec. 12 (Xinhua) -- Indonesia's central bank on Thursday held its benchmark interest rate unchanged as trade balance gap has improved and inflation hike is slowing.

The central bank governor board meeting decided to keep the key rate at 7.50 percent, the highest since 2009, after the bank had aggressively lifted the basic rate by 1.75 percent since earlier June, Difi A Johansyah, spokesman of the bank, told Xinhua.

The bank expected the inflation to slow down next year between 3.5 to 5.5 percent.

The Southeast Asia's largest economy chalked up a small trade surplus of 50 million U.S. dollar in October after registering a revised deficit of 810 million U.S. dollars in previous month, according to the national statistic bureau.

Indonesia's export grew 2.59 percent to 15.72 billion dollars in October on yearly basis, while import was down by 8.9 percent to 15.67 billion dollars, it said.

Inflation has steadied, moderating to 8.37 percent in November against 8.32 percent in October, the bureau said.

Hence, the central bank is upbeat about the consumer price index target this year.

Bank Governor Agus Martowardojo has projected that the inflation would be below the bank's target of 9.0 to 9.8 percent at this year's end.

http://www.globalpost.com/dispatch/news/xinhua-news-agency/131212/indonesian-central-bank-keeps-reference-rate-unchanged-at-75