BI keeps rate unchanged at 13.11%

BI keeps rate unchanged at 13.11%

Dow Jones, Jakarta

Indonesia's central bank said Tuesday that its one-month
Sertifikat Bank Indonesia, or SBI, note yielded 13.06 percent at
its weekly auction, unchanged from the previous week.

Bank Indonesia normally auctions its benchmark one-month SBI
note on Wednesdays, but changed the auction to Tuesday ahead of
the Muslim Idul Fitri holidays.

Idul Fitri falls on Friday, but many market participants are
already on holiday.

The central bank said it accepted Rp 9.5 trillion (US$1.05
billion) in bids for the one-month SBI notes. It also sold three-
month SBI notes at a yield of 13.11%, down from 13.21% at the
previous auction. The bank accepted Rp 3 trillion in bids.

Bank Indonesia has pushed rates lower this year to spur
economic growth. The one-month SBI yielded just below 18%
eighteen months ago. But inflation worries in recent months have
dampened enthusiasm for further sharp cuts. Consumer prices grew
10.48% on year in November, among the fastest inflation rates in
Asia.