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Indonesia central bank keep main policy rate at record low

Christian Fernsby |
Bank Indonesia (BI) left the benchmark 7-day reverse repurchase rate at 3.50%, where it has been since February and as expected by all 27 analysts in a Reuters poll.

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Topics: INDONESIA   

Indonesia’s central bank kept its main policy rate at a record low on Tuesday and trimmed its 2021 growth forecast for Southeast Asia’s largest economy, while pledging to strengthen measures to keep the rupiah currency stable.

Governor Perry Warjiyo said a global economic recovery had been stronger than initially anticipated, underpinning demand for Indonesia’s exports, but warned domestic consumption remained muted due to mobility restrictions to control the coronavirus outbreak.

BI’s forecast for economic growth this year was trimmed to 4.1%-5.1% from 4.3%-5.3% previously.

“Consumption is also improving according to various indicators ... but the level of improvement, based on the latest data, is lower than our earlier expectation,” Warjiyo told a streamed news conference.

BI would keep strengthening measures to stabilise the rupiah, he said.

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