JAKARTA, Aug 21 Reuters Indonesia39;s central bank on Wednesday held interest rates steady, as expected, preferring to focus on stabilizing the rupiah before possibly easing rates later this year.

Bank Indonesia BI kept the benchmark 7day reverse repurchase rate at 6.25, where it has been since April, as expected by all 30 economists polled by Reuters.

BI also kept the overnight deposit facility and lending facility rates unchanged at 5.50 and 7, respectively.

BI continues to see room to cut rates in the fourth quarter, while the focus on the current quarter will be on supporting a further strengthening of the rupiah exchange rate against the U.S. dollar, Governor Perry Warjiyo told a press conference.

A strong rupiah is good for Indonesian economy. Stronger rupiah makes prices cheaper, especially for food prices and support for low inflation through imported inflation, Warjiyo said.

Inflation has been within the central bank39;s 1.5 to 3.5 target range since the middle of 2023, and it eased to 2.13 last month, the lowest since February 2022.

In April, BI surprised markets with a rate hike to support the rupiah, which had fallen to fouryear lows against the U.S. dollar as risk aversion sparked by geopolitical concerns and uncertainty about U.S. interest rates triggered capital outflows.

The rupiah has strengthened by about 5 this month, and is trading near its strongest level this year, as the U.S. dollar softens on expectations that the Federal Reserve will cut…