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Indonesia central bank says rates to remain unchanged until inflation rises

Reuters - January 26, 2022

Jakarta – Indonesia's central bank will keep its key interest rate low until it sees signs of rising inflation, its deputy governor Dody Budi Waluyo told a seminar on Wednesday, adding that the bank will try to be "ahead of the curve" with its policy.

Dody said Bank Indonesia expected to see pressure on inflation and the exchange rate this year, but he said if there is no risk to its inflation outlook, "I think we will keep our interest rate (level) as (it is) today."

He predicted 2021 GDP growth would come in at around 3.6per cent, and this year's growth at around 5.1per cent to 5.2per cent, or the middle of BI's official 2022 growth outlook of 4.7per cent to 5.5per cent.

[Reporting by Gayatri Suroyo; Editing by Ed Davies.]

Source: https://www.channelnewsasia.com/business/indonesia-central-bank-says-rates-remain-unchanged-until-inflation-rises-246028