April 19, 2018 / 12:28 PM / a year ago

Indonesia c.bank says raising interest rate counterproductive for now

JAKARTA, April 19 (Reuters) - Indonesia’s central bank said Thursday’s decision to hold its benchmark interest rate steady was taken because raising it would be counterproductive for the economy.

“We don’t want a change in (the benchmark) interest rate, in this case a hike. That will be overkill or counter productive to economic growth and the momentum that is currently happening,” said Dody Budi Waluyo, a Bank Indonesia (BI) deputy governor.

He also said the room for any more cuts was “small” and the board of governors had taken into account global risks when deciding the level of the rate, including the possibility of a trade war and rising interest rates in the United States. (Reporting by Nilufar Rizki, Maikel Jefriando, Tabita Diela and Gayatri Suroyo Editing by Ed Davies, Robert Birsel)

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