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Bank Indonesia keeps benchmark interest rate unchanged

Bank Indonesia kept its benchmark interest rate unchanged at 4.75% amid efforts to maintain macroeconomic and financial system stability.

The deposits and lending rates were kept at 4% and 5.50%, respectively.

The central bank said the financial system remained stable, supported by the resilience of the banking industry. Meanwhile, the looser monetary and macroprudential policy stance was able to lower deposit rate by 131 basis points in the January-to-November 2016 period.

The central bank expects credit growth to be in the 10% to 12% range in 2017, and deposit growth at around 9% to 11% in line with increased economic activity and looser monetary and macroprudential policy stance.

The central bank also said it will continue to monitor domestic and global risks, including policy directions in the U.S. and China and the global oil price hike.