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Indonesia c.bank keeps key rate unchanged, as expected

JAKARTA, Aug 19 (Reuters) - Indonesia’s central bank kept its benchmark interest rate unchanged on Wednesday, as expected, saying the current level was consistent with efforts to support Southeast Asia’s largest economy while maintaining stability amid the COVID-19 pandemic.

Bank Indonesia (BI) kept the 7-day reverse repurchase rate at 4.00%, already the lowest since at least 2016, when it started using the rate as its benchmark, as expected by the majority of economists in a Reuters poll.

Its two other main policy rates, the overnight deposit and lending rates, were also kept steady at 3.25% and 4.75%.

BI has trimmed the key rate four times this year in response to the pandemic.

It has also pledged to buy $28 billion of government bonds while relinquishing interest payments, among other policies to inject liquidity into the financial system. (Reporting by Gayatri Suroyo, Fransiska Nangoy and Tabita Diela; Editing by Jacqueline Wong)

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