Indonesia Will Keep Rate on Hold 'For a While' as Fed Stalls.

Indonesia's central bank, Bank Indonesia, has decided to keep its benchmark interest rate unchanged at 6% for the fourth consecutive month. The bank aims to support the stability of the Indonesian currency, the rupiah, and maintain inflation within the target range of 1.5%-3.5% for 2024. Governor Perry Warjiyo stated that the bank will maintain the current rate for the time being and may consider a rate cut in the second half of the year. The decision comes as the rupiah remains volatile due to factors such as US Treasury yields and potential disruptions in global supply chains. The central bank is also coordinating with the government to prevent food price increases from affecting monetary policy. The bank has kept its macroprudential policy loose to encourage lending and sustain economic growth, with credit growing at its fastest pace in over a year. The article also mentions the upcoming power transition in October and the central bank's commitment to remaining independent in decision-making. [Extracted from the article]

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