JAKARTA: Indonesia's central bank is expected to hold all rates at its policy meeting on Thursday, despite higher than expected inflation in December, a Reuters poll showed.
Fourteen out of 15 analysts forecast no change to the benchmark interest rate, which was raised by 25 basis points to 7.75 percent in November, a day after the government raised fuel prices.
That hike caused December's annual inflation rate to spike to 8.36 percent, higher than Bank Indonesia's (BI) earlier prediction of 7.7-8.1 percent.
One analyst predicted BI would raise the benchmark rate by 25 basis points to 8 percent, due to inflation, and keep it at least until March.
The inflation pace is expected to cool after President Joko Widodo removed gasoline subsidies on Jan. 1, yet gasoline prices were lower by 10.5 percent as global oil prices slumped.
Analysts in the poll also expected BI on Thursday to keep the overnight deposit facility rate, known as Fasbi, and the lending facility rate steady.
Comments
Comments are closed.