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Indonesia central bank expected to hold rates again on Thursday
Shoaib Ur Rehman
12 Nov, 2014
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Copyright Reuters, 2014
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![](https://i.brecorder.com/images/2014/11/indonesian-flag-nov.jpg">JAKARTA: Bank Indonesia is expected to hold its benchmark interest rate at 7.50 percent on Thursday even though economic growth fell to its slowest pace in five years during the third quarter. </P><P>In July-September, gross domestic product expanded 5.01 percent on a yearly basis, continuing a slowing trend. The slowing stems partly from the central bank's tight monetary policy, which it began last year to contain inflation and the current account deficit and aid the rupiah. </P><P>All 15 analysts in a Reuters poll said Bank Indonesia (BI) will keep the benchmark rate at 7.50 percent, where it has been since November 2013, at its first policy meeting since Joko Widodo became president. </P><P>Widodo aims to get the annual growth rate up to 7 percent, but in the short-term the effort won't be aided by lower interest rates. Analysts expect policy to stay tight, due to expectations that US interest rates will rise in 2015 and Indonesia's new government soon might raise fuel prices - which would in turn increase the inflation rate. </P><P>Dian Ayu Yustina, an economist with Bank Danamon in Jakarta, said in a note that with weaker GDP data, the central bank will )
