Indonesia central bank trims GDP outlook, keeps rates on hold

INDONESIA'S central bank cut its 2022 economic growth outlook on Tuesday (Apr 19) amid risks from inflation

geopolitical tensions while it left interest rates at a record low to bolster the recovery.

Bank Indonesia (BI) kept the benchmark 7-day reverse repurchase rate at 3.50 per cent, as expected by all economists in a Reuters poll

Inflation in South-east Asia's largest economy was still within BI's 2 per cent to 4 per cent target range

Jakarta has been keeping a lid on inflation by subsidising some fuel prices and intervening in cooking oil prices.

Previous monetary tightening moves by the United States had triggered capital outflows and swings in the rupiah currency.

predicting BI would start its rate hike cycle next month for a total of 100 basis points this year.