By Ying Xian Wong
Indonesia's central bank stood pat at its June policy meeting as expected, aiming to keep inflation in check as well as to maintain the rupiah's stability.
Bank Indonesia on Thursday kept its benchmark seven-day reverse repo rate at 6.25%. All six economists polled by The Wall Street Journal had expected the decision.
The central bank also held its overnight deposit facility rate at 5.50% and its lending facility rate at 7.0%.
The decision is consistent with the bank's pre-emptive, forward-looking stance to ensure inflation remains under control and to strengthen the rupiah, Bank Indonesia Gov. Perry Warjiyo said at a press conference Thursday.
Economists had largely expected the central bank to stand pat on rates. Pressure on the rupiah has eased due to a weaker dollar and lower U.S. Treasury yields, following softer-than-expected U.S. inflation data, ANZ Asia economist Krystal Tan said in a recent note.
Bank Indonesia was expected to hold at Thursday's meeting and to use other tools to stabilize the Indonesian currency, after the Federal Reserve's "dot plot" was revised to indicate one rate cut this year, down from three, Tan said.
Write to Ying Xian Wong at yingxian.wong@wsj.com
(END) Dow Jones Newswires
06-20-24 0401ET
