Indonesia c.bank keeps key rates unchanged amid pressure on rupiah
JAKARTA, March 18 (Reuters) – Indonesia’s central bank kept its main policy rates steady on Thursday, holding fire after a bout of monetary support during the COVID-19 pandemic, and as the rupiah has come under pressure due to capital outflows.
Bank Indonesia (BI) left the benchmark 7-day reverse repurchase rate unchanged at a record low of 3.50%, as expected by all 28 analysts in a Reuters poll, after cutting them in February to help the coronavirus-hit economy.
It also kept the deposit facility and lending facility rates at 2.75% and 4.25%, respectively.
The rupiah has fallen more than 3% in the past month as a rise in U.S. yields, fuelled by inflation expectations, has lured investors out of riskier emerging market assets.
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