Bank Indonesia Maintains Interest Rates as Inflation & Trade Data Improve
At the Board of Governors Meeting (08/05), Bank Indonesia decided to keep its benchmark interest rate (BI Rate) at 7.50 percent, the Lending Facility at 7.50 percent and the Deposit Facility at 5.75 percent. Bank Indonesia considers this monetary policy consistent with efforts to direct inflation back to its target level of 4.5 ± 1 percent in 2014 and 4.0 ± 1 percent in 2015, as well as to further ease the country's current account deficit to a more sustainable level. On Friday, Bank Indonesia is expected to release current account data covering Q1-2014.
Bank Indonesia said in its statement that domestic demand remained well managed, although economic growth in the first quarter of 2014 decreased much more than expected due to a contraction in real exports, particularly mining commodities after implementation of the ban on exports of raw minerals in January 2014.
Later today, the official press release of Bank Indonesia will be published in our Financial Columns section.