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Bank Indonesia maintains key interest rate amid rising commodity prices

Published Sep 21, 2023 11:54
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In a bid to shield against potential currency instability and inflation spurred by soaring rice prices, Bank Indonesia announced on Thursday that it will maintain its key interest rate. The seven-day reverse repurchase rate will stay at 5.75%, marking the eighth consecutive month at this four-year high.

The decision aligns with the predictions made by all 27 economists who participated in a Bloomberg survey. They accurately forecasted that the central bank would not adjust the benchmark interest rate in this round. This move reiterates the bank's dedication to preserving economic stability amidst escalating commodity prices.

Indonesia's central bank's decision comes as the nation grapples with the economic implications of rising rice prices. The central bank's consistent interest rate serves as a bulwark against potential fluctuations in currency value and inflation, two factors that could potentially destabilize the nation's economy.

The central bank's stance on its interest rate reflects its commitment to maintaining economic stability. As commodity prices continue to rise, this decision underscores the importance of steady monetary policy in managing potential inflationary pressures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Bank Indonesia maintains key interest rate amid rising commodity prices
 

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