By Yi Wei Wong

Bank Indonesia maintained its benchmark interest rate on Thursday to safeguard the stability of the rupiah and keep inflation in check.

The central bank kept its seven-day reverse repo rate unchanged at 3.50%. In a Wall Street Journal poll of seven analysts, the central bank was widely expected to stand pat.

Bank Indonesia maintained its overnight deposit and lending facility rates at 2.75% and 4.25%, respectively.

Various economic indicators, such as consumer confidence and retail sales, remained strong in December, which indicates that Indonesia's economic recovery seems to be well underway, Bank Indonesia Gov. Perry Warjiyo said.

The central bank expects Indonesia's economic growth to range between 4.7%-5.5% this year.

Indonesia's economy grew 3.51% on year during the third quarter of 2021. This was slower compared with a growth of 7.07% in the previous quarter, as Indonesia moved to tighten Covid-19 movement controls to curb the spread of the coronavirus.

Indonesia eased its Covid-19 related movement restrictions in the fourth quarter of last year.

Southeast Asia's largest economy previously shrunk 2.07% in 2020 due to the impact of the coronavirus, which marked its first annual contraction since the Asian financial crisis.

According to data from the country's health ministry, the number of positive Covid-19 cases has crossed 4.2 million and the virus has caused 144,192 deaths.


Write to Yi Wei Wong at yiwei.wong@wsj.com


(END) Dow Jones Newswires

01-20-22 0250ET