JAKARTA, Aug 14 (Reuters) - Indonesia’s central bank kept its benchmark reference rate unchanged at 7.50 percent, as widely expected, at a policy meeting on Thursday.
“The rate is consistent to drive inflation to Bank Indonesia’s target of 4.5 percent with more or less 1 percent and to lower the current account deficit towards a healthier level,” Bank Indonesia Governor Agus Martowardojo told a press conference.
The policy rate has been kept unchanged since November.
All analysts in a Reuters poll expected the central bank to keep the policy rate steady to narrow current account deficit, despite much lower annual inflation and against lower economic growth.
The governor said the current account deficit in the second quarter reached 4.27 percent of gross domestic product, higher than analysts’ forecast of 4 percent.
After the current account gap was announced, the rupiah pared some of its gains for the day and was at 11,680 to the dollar. It had ended Wednesday at 11,690.
The central bank also left the overnight deposit facility rate, or FASBI, and the lending facility rate at 5.75 percent and 7.50 percent, respectively.
Announcement date Rate (percent)
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Reporting by Adriana Nina Kusuma, Nilufar Rizki and Jongwoo Cheon; Writing by Gayatri Suroyo; Editing by Richard Borsuk