REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia's board of governors have again decided to maintain the reference rate at 7.5 percent at a meeting on Thursday. The central bank has maintained the rate at the level for the last ten months.

"The policy is consistent with efforts to make inflation reach 4.5 (plus or minus one percent) in 2014 and 4 (plus or minus one percent) in 2015, as well as to reduce current account deficit at a healthier level," Agus Martowardojo, the bank's governor, said at a press conference.

Bank Indonesia has also decided to maintain its Lending Facility rate and Deposit Facility rate at 7.5 percent and 5.75 percent, respectively. The bank reported that the process of adjustment toward a more balanced economic structure was still ongoing, bolstered by macroeconomic stability that has remained maintained.

"The situation is reflected in the domestic demand, which is under control, and inflation, which is on a downward trend despite increasing current account deficit due to a seasonal pattern in the second quarter, among other things," Agus noted.

He pointed out that some domestic and externals risks still existed, which had to be monitored closely, as these could affect efforts to reach the inflation target and improve current account performance.

"In view of that, Bank Indonesia will keep strengthening its combination of monetary and macro-prudential policies and policies to strengthen the structure of domestic economy and foreign debt management, especially corporate foreign debts," he said.

Agus added that Bank Indonesia will also increase coordination with the government in its efforts to control inflation and current account deficit, so that economic adjustment process could run well by maintaining the economy to grow sustainably in the future.

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