Bank Indonesia Holds Policy Rate Steady, Lowers RRR for Select Banks

Bank Indonesia kept its key rate at a four-year high to shield the rupiah ahead of a widely expected tightening by the US central bank, while lowering reserve requirement for some lenders to boost credit expansion, signaling that it’s keeping a close eye on economic growth.

The central bank held the seven-day reverse repurchase rate at 5.75% on Tuesday, as seen by all 30 economists surveyed by Bloomberg. The key rate has been kept unchanged at that level for six straight months.

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