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Indonesia Holds Key Rate Steady For Second Time

Indonesia's central bank left the key interest rate unchanged for a second straight session in January after a hike in November.

The Board of Governors held the seven-day reverse repo rate unchanged at 6 percent on Thursday, the Bank Indonesia said, in line with economists' expectations.

The previous change in the key interest rate was a quarter-point hike in November. The bank has raised the rate by a cumulative 175 basis points in six sessions thus far this year.

The latest decision is consistent with ongoing efforts to reduce the current account deficit to a manageable threshold and maintain the attractiveness of domestic financial assets, the bank said.

Indonesia aims to control the current account deficit within the threshold of 2.5 percent of GDP in 2019.

The bank projected national economic growth for this year in the 5.0-5.4 percent range, backed by domestic demand and improvements in the position of net exports.

Inflation is seen within the target of 3.5±1 percent in 2019.

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