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.