Indonesia keeps benchmark interest rate unchanged at 3.50%


JAKARTA, Aug 19 (Reuters) – Indonesia’s central bank on Thursday held its benchmark interest rate unchanged at a record low as it tries to support the economy’s recovery from the coronavirus pandemic without adding further downward pressure on the rupiah currency.

Bank Indonesia (BI) kept the 7-day reverse repurchase rate at 3.50%, where it has been since February, as expected by the majority of economists in a Reuters poll.

Its overnight Deposit Pocketoption and lending facility rates were also held at 2.75% and 4.25%, respectively.

BI has cut interest rates by a total of 150 basis points and injected over $57 billion of liquidity into the financial system during the COVID-19 pandemic.

(Reporting by Gayatri Suroyo, Bernadette Christina Munthe and Nilufar Rizki; Editing by Ana Nicolaci da Costa and Andrew Cawthorne)

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