Bank Indonesia keeps interest rate unchanged
2012-08-09 11:47:27
Indonesia's central bank on Thursday decided to hold the key interest rate unchanged at 5.75 percent for a sixth straight rate-setting meeting. This was in line with expectations.
Board of Governors at Bank Indonesia said in a statement that the interest rate is still considered to be consistent with inflation forecast, which is expected to remain low and contained within its target range of 3.5-5.5 percent in 2012 and 2013.
The central bank forecasts the economy to expand 6.1-6.5 percent this year with growth accelerating to 6.3-6.7 percent next year. Strong domestic consumption and investment are seen supporting growth during the period.
The bank appeared particularly concerned about the increase in current account deficit due to weak export performance. However, the shortfall is expected to narrow in the second half of the year.