Friday, March 4, 2011

Bank Indonesia Holds Benchmark Interest Rate at 6.75%

Bank Indonesia retained its benchmark reference rate at 6.75%, marking a temporary pause in its monetary policy tightening. The Bank said "we are still targeting inflation of 5 percent, plus or minus one percent, and we expect core inflation to be at that range,". The Bank also reiterated its position of a "monetary policy direction that is biased toward tightening as an effort to manage inflation pressure which remains high". Indonesia experienced 7.02% inflation in January 2011 from a year earlier; with core inflation at 4.36%, gaining from 4.18%.

www.CentralBankNews.info

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