Indonesian central bank keeps rate unchanged

The Indonesian central bank kept its seven-day reverse repo rate unchanged on Thursday for a fourth straight month in a bid to counter the risks of global economic uncertainty.

The governor board's meeting decided to hold the rate at 4.74 percent, Governor of the central bank Agus Marto Wardojo said.

"The decision is consistent with the central bank's effort to keep macro-economic stability and financial system," he said.

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

The move came after the U.S. Federal Reserve hinted at more rate hikes over improving economic data.

The Indonesian central bank had aggressively applied a loosening policy by cutting the basic rate 150 basis points last year to spur growth.

The Southeast Asia's largest economy is expected to expand 5.0 to 5.4 percent this year with inflation target of 3 to 5 percent, according to the bank. Endit