BENGALURU—Indonesia’s central bank will hold interest rates steady next week to bolster the economy as activity stalled by the recent devastating COVID-19 wave gradually gathers pace, according to a Reuters poll of economists. Since the onset of the pandemic, Bank Indonesia (BI) has slashed its benchmark seven-day reverse repurchase rate by 150 basis points to a record low 3.50 percent and injected liquidity worth more than $57 billion. All 29 economists expected the rate to remain steady at the conclusion of BI’s Oct. 18-19 policy meeting. Median forecasts from the poll, conducted over the past week, predicted interest rates will stay at their current 3.50 percent until the third quarter of next year, increasing by 50 basis points in the last quarter of 2022 to 4.00 percent. “As long as inflation remains weak and the currency remains broadly stable, then they are happy to keep monetary policy supportive to try …
Bank Indonesia to Hold Rates Until Late 2022 Awaiting Economic Resurgence: Reuters Poll
October 15, 2021
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