Indonesia central bank seen holding rate as U.S.-China trade spat hits rupiah: Reuters poll

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Indonesia central bank seen holding rate as U.S.-China trade spat hits rupiah: Reuters poll
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Indonesia's central bank on Thursday will keep its main interest rate uncha...

JAKARTA - Indonesia’s central bank on Thursday will keep its main interest rate unchanged for a sixth straight policy meeting as rising U.S.-China trade tensions renew pressure on the rupiah, a Reuters poll showed.

But for this week’s meeting, all 20 analysts in the poll forecast no change in Bank Indonesia’s 7-day reverse repurchase rate, which has been 6.00 percent since November. Since a peak in mid-April - when unofficial vote counts showed President Joko Widodo securing a second term - the rupiah has dropped about 3 percent against the dollar, due to souring foreign investors sentiment for risky assets and a cyclical rise in dollar demand in Indonesia for offshore payments.

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