Indonesia finmin says c.bank on right track if key rate kept at 7.5 pct

JAKARTA, June 11 Wed Jun 11, 2014 12:33am EDT

Related Topics

JAKARTA, June 11 (Reuters) - Indonesia's finance minister said the central bank was on the right track to keep its benchmark interest rate at 7.5 pct, as Bank Indonesia prepares for a policy meeting on Thursday.

"Bank Indonesia's policy to keep (its) rate at 7.5 percent is good because in future we will face an increase in the Fed rate," Finance Minister Chatib Basri told an investment forum on Wednesday, adding that the government expected the U.S. Federal Reserve to raise its benchmark rate in the second half of 2015.

"If we don't do something about the macro-economy, there will be a capital outflow."

During the same event, Bank Indonesia Senior Deputy Governor Mirza Adityaswara said his team was "comfortable" with the rupiah exchange rate at between 11,300-11,800 to the U.S. dollar this year, slightly broader than the central bank's previous guidance for 2014.

(Reporting by Adriana Nina Kusuma and Fergus Jensen; Editing by Jacqueline Wong)

FILED UNDER: