Illustrative image (Photo: Reuters) Hanoi (VNA) - TheBank Indonesia (BI) announced at its meeting on April 18 it will keep its benchmark interestrates unchanged for a third straight time, predicting headline inflationwould be back within its target sooner.
The Southeast Asia's biggest economy has been supported by acommodities-led export boom, though economists expect a slowdown in growth astighter monetary policies across the world weigh on global demand.
BI Governor Perry Warjiyo said maintaining the interestrate at 5.75% as expected is aimed at maintaining macroeconomic stability. Thecurrent benchmark rate is still sufficient to keep core inflation within BI'starget range of 2-4%.
Last month, inflation was already at 4.9%, but it will continueeasing, he said, adding that starting August, it could be below 4%. BI previouslyexpected headline inflation to return to target in September.
Meanwhile, with sentiment for riskier assets improving amidmarket forecasts that US rates are near their peak, the rupiah hasstrengthened by almost 4% in the past month, even with some depreciation thisweek.
The central bank kept its 2023 GDP growth outlook at theupper end of 4.5%-5.3% range./.
