Indonesia Central Bank Holds Benchmark Rate at 5.75% as Rupiah, Stocks Slide

Indonesia's central bank kept its benchmark 7-day reverse repurchase rate unchanged at 5.75% on Wednesday, holding steady for a fourth consecutive policy review despite a record two-day rout in the country's stock market and a rupiah hovering near all-time lows. Bank Indonesia did raise its overnight deposit facility rate by 25 basis points to 5.00%, while leaving lending facility rates at 6.50%. The hold matched the forecast of 15 of 29 economists in a Reuters poll; the remainder had expected a hike of at least 25 basis points to stem the selloff. The bank raised rates by 100 basis points across three moves between May and June to defend the rupiah. The currency has come under renewed pressure after a selloff triggered by a warning last week from MSCI that it could relegate Indonesian equities to "standalone" market status.