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JAKARTA: Indonesia’s central bank held interest rates unchanged on Thursday as it stuck to its 2021 growth forecast, but pledged to continue to support an economy struggling with rising coronavirus cases and tightening restrictions.

Bank Indonesia (BI) kept the 7-day reverse repurchase rate at 3.75%, a record low, as expected by the majority of analysts in a Reuters poll.

While the head of BI said that rising coronavirus cases in December and January had some impact on economic activity, the central bank continued to expect 4.8%-5.8% growth this year.

“We will periodically reassess that based on (progress on) vaccination, global condition, fiscal expansion, capital expenditure and investment growth,” said Governor Perry Warjiyo at a streamed briefing.

“Going forward, Bank Indonesia will continue to direct all policy instruments to support the national economic recovery.”

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