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Indonesia holds key interest rate at 7.5% for fourth month

Published on Mar 13, 2014 7:04 PM

JAKARTA, Indonesia (AFP) - Indonesia's central bank held its benchmark interest rate at 7.50 per cent on Thursday for the fourth consecutive month as Southeast Asia's top economy showed signs of recovery from a tumultuous 2013.

Indonesia's currency has strengthened in recent months after plunging by more than 20 per cent last year and inflation is easing after almost doubling in 2013 from the previous year.

Bank Indonesia governor Agus Martowardojo said earlier on Thursday that the bank would not tolerate inflation beyond the 2014 target range of 3.5 per cent and 5.5 per cent.

While on-year inflation was still out of range in February at 7.75 per cent, it was an improvement on January's rate of 8.22 per cent.

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