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Indonesia Central Bank holds rates at first 2021 meeting

Reuters - January 21, 2021

Jakarta – Indonesia's central bank kept key interest rates unchanged at a record low on Thursday, as expected, holding fire after providing a bout of monetary stimulus last year to support the coronavirus-hit economy.

Bank Indonesia (BI) left the 7-day reverse repurchase rate at 3.75%, the lowest since the central bank began using it as its benchmark in 2016. A majority of analysts in a Reuters poll had expected rates to remain steady.

BI also kept its overnight deposit facility and lending facility rates at 3.00% and 4.50%, respectively.

Last year, BI slashed interest rates five times totalling 125 basis points, pumped some $50 billion worth of liquidity into the financial system and relaxed lending rules to help Southeast Asia's largest economy weather the COVID-19 pandemic. The central bank last cut rates in November.

[Reporting by Gayatri Suroyo, Fransiska Nangoy and Tabita Diela; Editing by Ana Nicolaci da Costa.]

Source: https://www.reuters.com/article/indonesia-economy-rates/indonesia-c-bank-holds-rates-at-first-2021-meeting-idUSJ9N2GS01