Bank of Indonesia holds interest rate for fourth time
2012-06-12 12:16:06
Indonesia's central bank on Tuesday decided to keep its benchmark interest rate unchanged at a record low for the fourth consecutive time. The decision was in line with economists' expectations.
The Board of Governors of Bank Indonesia retained the policy rate at 5.75 percent, citing weaker inflation expectations and a stable domestic economy, despite an increase in global economic uncertainty.
The bank said it expects the Indonesian economy to expand in the 6.3-6.7 percent range in the second quarter and the whole of 2012.
Indonesia's annual inflation unexpectedly eased to 4.45 percent in May from 4.5 percent in April. Core inflation, excluding volatile food and energy prices, slowed to 4.14 percent from 4.24 percent.