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BI maintains 7.5% interest rate
Bank Indonesia (BI) decided in Jakarta on Thursday to maintain its current 7
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Bank Indonesia (BI) decided in Jakarta on Thursday to maintain its current 7.5 percent benchmark interest rate.
"The policy is in line with our efforts to maintain our target of keeping the inflation rate at 4.5 percent with plus and minus one percent throughout 2014, as well as 4 percent with plus and minus one percent next year," BI governor Agus Martowardojo told reporters after the central bank's board of governors meeting, as quoted by Antara news agency.
The bank also decided to maintain the interest rates of lending facilities and deposit facilities at 7.5 percent and 5.75 percent, respectively.
Agus said that the figures were suitable for the country's economic structure and that it was hoped the policy would continue to support economic stability.
"This can be seen from domestic demand, which is under control, and our inflation rate, which tends to decrease even though the current account deficit was pretty high during the second quarter of the year," he added.
Agus, however, admitted that a number of both external and internal market risks that might affect the target still lay ahead for the government.
"Thus, we are going to continue to strengthen our monetary and macro-prudential policy to enhance our domestic economic structure and better manage foreign debt," he said.
Agus went on to say that the bank was committed to strengthening collaboration with relevant ministries and departments to better control inflation and reduce the current account deficit. (nfo)
