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Indonesian central bank maintains key rate

Bank Indonesia kept its seven-day reverse repo rate unchanged at 4.25%, saying previous monetary easing remains sufficient to continue driving the nation's economic recovery.

The central bank also maintained the deposit facility and lending facility rates at 3.50% and 5.00%, respectively. The rates are effective Dec. 15.

The bank lowered the key rate in August and September then left it unchanged for the next two months.

Indonesia's economy is forecast to grow 5.10% year over year in 2017, up from the 5.02% expansion in 2016, the bank said. Economic growth in 2018 is projected to be between 5.1% and 5.5%.

"The domestic economic growth has been bolstered by a surge of commodity exports that drive the non-building investment, particularly amongst commodity-based firms. Fiscal stimuli from the Government related to infrastructure development also encourages building investment," the bank said.

Inflation is still within the target range for 2017, the bank said. It projects low and controlled inflation in 2018 within the new target corridor of 3.5% plus or minus 1%.