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Thursday, March 16, 2017

Indonesia c.bank keeps policy rate unchanged

JAKARTA, March 16 (Reuters) - Indonesia's central bank on Thursday kept its benchmark interest rate unchanged for the fifth straight meeting, as expected, saying it will monitor global uncertainty and domestic risks, including inflation pressure.

Bank Indonesia (BI) left the 7-day reverse repurchase rate steady at 4.75 percent. All 20 analysts in a Reuters poll had forecast no change.

The central bank also kept unchanged its two other policy rates, which act as the floor and ceiling of the overnight interbank money market, at 4.00 percent and 5.50 percent, respectively.

The U.S. Federal Reserve raised interest rates for the second time in three months hours before BI's announcement.

BI last year cut its benchmark rate six times by a total of 150 basis points and relaxed some lending rules to lift economic growth.

It also switched its main policy rate to enhance the effect of rate cuts on market rates. Until August 2016, the main rate was the 12-month reference rate.

KEY DATA: Announcement date Rate (percent)* --------------------------------------- 16-Mar-2017 4.75 16-Feb-2017 4.75 19-Jan-2017 4.75 15-Dec-2016 4.75 17-Nov-2016 4.75 20-Oct-2016 4.75 22-Sep-2016 5.00 19-Aug-2016 5.25 21-Jul-2016 5.25 16-Jun-2016 5.25 19-May-2016 5.50 21-Apr-2016 5.50

* All announcements before Aug. 19 were during a transition period for the new benchmark (Reporting by Nilufar Rizki, Hidayat Setiaji and Gayatri Suroyo; Editing by Jacqueline Wong)

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Source: Indonesia c.bank keeps policy rate unchanged

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