The Bank of Indonesia kept the benchmark interest rate unchanged at the last meeting of this year to ease the pressure on the Indonesian rupiah at a time when foreign capital outflows continue. Bank Indonesia kept interest rates unchanged at 4.75% on Wednesday, in line with the predictions of 22 of the 35 economists surveyed. The rest of the economists expect a 0.25 percent cut in interest rates. Continued inaction this time highlights the importance that the central bank attaches to maintaining monetary stability, and foreign investors continue to withdraw due to weak economic growth and the risk of excessive expansion of government spending.

The Bank of Indonesia kept the benchmark interest rate unchanged at the last meeting of this year to ease the pressure on the Indonesian rupiah at a time when foreign capital outflows continue. Bank Indonesia kept interest rates unchanged at 4.75% on Wednesday, in line with the predictions of 22 of the 35 economists surveyed. The rest of the economists expect a 0.25 percent cut in interest rates. Continued inaction this time highlights the importance that the central bank attaches to maintaining monetary stability, and foreign investors continue to withdraw due to weak economic growth and the risk of excessive expansion of government spending.