Indonesia keeps key rate unchanged to guard against capital outflows

The Indonesian central bank on Thursday held its benchmark interest rate steady to maintain capital inflows into the country ahead of the hawkish prospect of the U.S. Fed Reserve's upcoming policies.

The lender's board meeting decided to leave its seven-day repo repurchase rate unchanged at 4.75 percent, spokesman of the bank Tirta Sagara said at the bank headquarters.

The meeting also decided to keep deposit facility rate and lending facility rate at 4 percent and 5.5 percent respectively, Sagara said.

The central bank had applied the longest loosening cycle from January to October 2016, attempting to accelerate loan growth and economic growth.

Low exposure on shipment of products overseas amid sound macro-economic condition and more credible fiscal condition is expected to factor in luring foreign capitals into the Southeast Asia's biggest economy.

Rupiah gained 2.3 percent against the U.S. dollar last year. Endit