2014.07.1010:45:00UTC+00Indonesia Leaves Rates Unchanged After Election

Indonesia's central bank left its key interest rate unchanged for an eighth consecutive month on Thursday, in a bid to curb the current-account deficit, a day after the presidential election.

The Board of Governors of the Bank Indonesia decided to maintain the BI Rate at 7.50 percent, the bank said in a statement. The decision was widely expected.

The bank also retained the Lending Facility rate and Deposit Facility rate, also known as the FASBI, at 7.50 percent and 5.75 percent, respectively.

"Such policy is consistent with efforts to steer inflation towards the target corridor of 4.5?1 percent in 2014 and 4.0?1 percent in 2015, as well as to reduce the current account deficit to a more sustainable level," the bank said.

Presidential hopeful Joko Widodo, who is the Jakarta Governor, and ex-general Prabowo Subianto, both are claiming victory ahead of official results due apparently on July 22.

"Looking ahead, although the central bank may have some scope to cut interest rates over the next year or so, loosening, when it does arrive, is likely to be very gradual," Capital Economics economist Gareth Leather said.

"Indonesia's new president should not expect any favors from the central bank as he looks to revive the economy."

Inflation eased in June to 6.70 percent, ahead of the holy fasting month.