Rates in Indonesia to remain on hold for a while yet

Today’s decision by Bank Indonesia (BI) to leave interest rates on hold despite the slowing economy reflects continued unease over the size of the current account deficit. With the deficit likely to fall back only gradually over the next couple of years, interest rates are likely to remain elevated for some time yet. In other words, president-elect Joko Widodo, who takes office at the end of the month, should not expect any favours from the central bank as he looks to revive the struggling economy.