March 13, 2014 / 11:42 AM / 4 years ago

Indonesia trims 2014 GDP growth forecast on slowing domestic demand

JAKARTA, March 13 (Reuters) - Indonesia’s central bank revised down its forecast for economic growth this year to around 5.5-5.9 percent, on slowing domestic consumption and investment, as well as sluggish exports.

The bank previously estimated the economy to expand at the lower end of a 5.8-6.2 percent range.

On Thursday, Bank Indonesia (BI) kept its benchmark rate unchanged at 7.50 percent a for fourth consecutive month. The rate remained consistent with a 2014 inflation target at 3.5-5.5 percent, spokesman Tirta Segara said.

However, the bank would stay vigilant regarding inflationary pressures from administered prices.

BI also sees that the country’s current-account deficit could be around 2.5 percent of gross domestic product. (Reporting by Adriana Nina Kusuma and Nilufar Rizki; Writing by Rieka Rahadiana; Editing by Jonathan Thatcher and Richard Borsuk)

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