JAKARTA (Reuters) – Indonesia’s central bank is widely expected to keep its benchmark interest rate steady at its policy review on Thursday, for the sixth consecutive meeting, a Reuters poll showed.
All 15 analysts surveyed in the poll predict Bank Indonesia (BI) will keep the benchmark 7-day reverse repurchase rate <IDCBRR=ECI> unchanged at 4.75 percent.
The central bank cut its benchmark rate six times by a total of 150 basis points between January and October last year and relaxed some lending rules to lift economic growth.
Bank Indonesia has said its stance remains cautiously accommodative as it monitors domestic inflationary pressures and the impact of higher U.S. interest rates.
The central bank kept rates steady at its March review, hours after the Federal Reserve hiked rates, raising concerns about outflow pressures.
But Southeast Asia’s largest economy has benefited from stronger global growth and improved commodity prices that have boosted exports and narrowed its current account deficit.
Of four analysts with longer-term views, three said they expected BI to hold rates for the rest of the year while one predicted a 25-basis-point hike.
(Polling by Nilufar Rizki; Writing by Fransiska Nangoy; Editing by Jacqueline Wong)