Asia-Pacific News

Indonesia keeps rates steady at 7.5%


Indonesia's central bank kept its key reference rate steady at 7.50 percent on Thursday, on a narrower current-account deficit and after hefty tightening last year.

The central bank also held the deposit facility rate, or FASBI, and lending facility rate at 5.75 percent and 7.50 percent, respectively.

(Read more: Despite good data,headwinds await Indonesia's economic growth)

The Bank Indonesia headquarters in Jakarta, Indonesia.
Dimas Ardian | Bloomberg via Getty Images

BI Governor Agus Martowardojo said the current-account deficit had narrowed to 1.98 percent of GDP in the fourth quarter.

All but one analyst in a Reuters poll had expected the bank to keep its reference rate on hold, due to recently positive trade data and a more stable exchange rate.

The G20 economy has kept its monetary policy tight to combat surging inflation and push down its current-account deficit, lifting the key reference rate a total of 175 basis points between June and November.