Indonesia on Thursday held its key interest rate at 5.75 percent for the ninth straight month, saying inflation was in check and pressure on the rupiah was easing.
Inflation in Southeast Asia’s biggest economy edged up to 4.61 percent in October from 4.31 percent the previous month as the price of processed food, drinks and tobacco increased. But it remained within the official target range.
The rupiah has been Asia’s worst-performing currency this year, but the central bank said the slide in its value was slowing.
“The domestic economy is growing quite well, even though it is slowing down due to a drop in exports due to the impact of the continuing weakening of the global economy,” added the central bank, Bank Indonesia, in a statement.
Growth slowed in the third quarter to 6.2 percent year-on-year as commodity exports fell due to lower demand from China, but Indonesia’s economy remains one of the fastest-growing in the world.
The bank is targeting inflation of between 3.5 and 5.5 percent this year and next. It expects inflation for the whole of 2012 to come in at around 5.5 percent.
Indonesia holds key interest rate at 5.75 percent
