Indonesia central bank seen holding rates on Thursday: Reuters poll

Indonesia central bank seen holding rates on Thursday: Reuters poll

In the poll, 17 out of 18 analysts forecast no change to the benchmark interest rate , which was raised by 25 basis points to 7.75 percent on Nov. 18.

One analyst predicted Bank Indonesia (BI) would raise the rate another 25 basis points to 8 percent, to match its lending facility rate, but would leave overnight deposit facility rate, known as Fasbi, at 5.75 percent.

At a special meeting right after President Joko Widodo announced gasoline and diesel prices hikes, BI also raised the lending rate by 50 basis points to "anchor" inflation expectation and encourage interbank borrowing.

All 12 of the analysts who made forecasts for Fasbi and the lending rate on Thursday said BI would not change either.

Fifteen analysts who gave forecasts for the benchmark rate at the end of March agreed it would be unchanged from the level at end-2014.

(Polling by Nilufar Rizki; Writing by Gayatri Suroyo; Editing by Richard Borsuk)

TOP READS FROM THE FISCAL TIMES