Indonesian central bank keeps rate benchmark on hold at 6.50%

In a meeting held on Thursday, the Indonesian central bank (BI) governor board retained the existing 6.5 percent rate benchmark that has been on hold since August last year, local media reported.

Director of BI Strategic Planning and Public Affairs Dyah Makhijani said that decision to retain the existing rate benchmark was based on fact that the country's economy has been continuously improving with positive prospect.

She added that the decision was also aimed at preserving national financial stability amid the risks originated from euro debt crisis.

Despite the euro crisis, the BI governor board learned that economy recovery is still progressing in several developed countries like the United States, Japan and in developing countries in Asia like China and India, the Antara news agency reported.

Thanks to the country's strong economic fundamentals, Dyah pointed out that euro crisis is yet to significantly affect the national economy.

Source:Xinhua