Key rate held at 5.75 since January
Focus remains on rupiah stability
New securities will use govt bonds as underlying assets

JAKARTA, Aug 24 Reuters Indonesia39;s central bank left interest rates unchanged on Thursday, as expected, saying current levels are sufficient to keep inflation in check, while strengthening efforts to stabilise the rupiah currency.

Bank Indonesia BI plans to issue new rupiahdenominated securities, using its holdings of government bonds as the underlying asset, as a new monetary instrument aimed at attracting foreign portfolio capital flows, Governor Perry Warjiyo said.

BI kept the benchmark 7day reverse repurchase rate at 5.75 for its seventh straight monthly policy review, as widely expected by economists surveyed by Reuters. Its two other main rates were also left unchanged.

BI has been trying to balance currency stability, keeping inflation in check and maintaining growth momentum in Southeast Asia39;s largest economy as exports fall amid softening commodity prices.

There have been calls for the bank to start considering rate cuts to shore up growth after inflation cooled to within its target earlier than expected, but some economists say further tightening is necessary to prevent capital outflows.

Guarding the rupiah is our way to protect the domestic economy, inflation and growth from global spillovers, Warjiyo told reporters.

All countries are experiencing currency depreciations, our focus is to stabilise the exchange rate…