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Indonesia central bank holds key policy rate in wake of Fed hike

Published 12/15/2016, 05:49 AM
Updated 12/15/2016, 05:50 AM
© Reuters.  Indonesia central bank holds key policy rate in wake of Fed hike

JAKARTA (Reuters) - Indonesia's central bank on Thursday held its benchmark interest rate steady, as expected, and said it will remain vigilant on the risks that capital flows into the country can be reversed.

Bank Indonesia (BI) kept the 7-day reverse repurchase rate <IDCBRR=ECI> at 4.75 percent. All 23 analysts in a Reuters poll had expected BI, ending a policy meeting shortly after the Federal Reserve hiked U.S. rates, to hold its benchmark.

BI also held steady the two other rates, which act as the floor and ceiling of the overnight interbank money market, at 4.00 percent and 5.50 percent, respectively.

The central bank trimmed its benchmark six times during January-October by a total of 150 basis points, trying to get banks to lend more and the economy to grow faster.

BI this year switched its main policy rate to enhance the effect of monetary easing on market rates. Until August, BI's main policy rate was the 12-month reference rate.

KEY DATA:

Announcement date Rate (percent)*

---------------------------------------

15-Dec-2016 4.75

17-Nov-2016 4.75

20-Oct-2016 4.75

22-Sep-2016 5.00

19-Aug-2016 5.25

21-Jul-2016 5.25

16-Jun-2016 5.25

19-May-2016 5.50

21-Apr-2016 5.50

* All announcements before Aug. 19 were during a transition period for the new benchmark

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