Arnoldus Kristianus, Jakarta – Bank Indonesia kept its benchmark interest rate at 5.75 percent on Wednesday in a bid to keep inflation in check – a move that analysts had expected.

The central bank also decided to maintain a 5-percent deposit facility rate. The lending facility rate remains unchanged at 6.5 percent. Bank Indonesia's governor Perry Warjiyo told the press that the decision to maintain the benchmark interest rate aligned with the country's attempt to keep inflation between 1.5 and 3.5 percent.

"It will also help us maintain rupiah stability amid global uncertainties, while also encouraging a sustainable economic growth," Perry said in Jakarta.

Bank Indonesia will continue to keep an eye on inflation and economic growth prospects to adjust the interest rate policies. The bank will also take into account the movements of the rupiah exchange rate.

"We will continue to make the best use of our financial system and macroprudential policies to sustain economic growth," Perry said.

Analysts had predicted that Bank Indonesia would have the interest rate unchanged.

"We believe that Bank Indonesia should prioritize exchange rate stability and financial market resilience by maintaining the benchmark interest rate at 5.75 percent in March," senior economist Teuku Riefky said.

Economist Josua Pardede told the state news agency Antara that the interest rate would remain steady at 5.75 percent, citing among his reasons global uncertainties.

Source: https://jakartaglobe.id/business/bank-indonesia-keeps-interest-rate-steady-at-575-pct-as-expecte