2017.10.1908:00:00UTC+00Indonesia Maintains Key Rate As Expected

Indonesia's central bank maintained its key interest rate, as widely expected, after lowering it for two straight meetings.

Bank Indonesia retained its seven-day reverse repurchase rate at 4.25 percent, on Thursday. The bank had reduced the rate by 25 basis points each in August and September.

Policymakers said the decision was consistent with efforts to maintain macroeconomic stability as well as to boost the pace of economic recovery while taking into account the dynamics of the global and domestic economy.

With inflation under control and growth continuing to struggle, Gareth Leather, an economist at Capital Economics, said another rate cut is likely soon.

Probably the main reason BI did not cut interest rates again today has been the recent weakness of the rupiah, which has fallen by just under 2 percent against the US dollar over the past month, the economist added.