Financial News: Bank Indonesia Holds Key Rate As Expected

Bank Indonesia Holds Key Rate As Expected

09/23/2026 - 08:10:00 (RTTNews)

(RTTNews) - The Bank Indonesia left its interest rate unchanged for the third straight meeting to stabilize currency amid persistently strong external headwinds.

The board of governors, governed by Perry Warjiyo, decided to hold the BI rate at 5.75 percent.

The deposit facility rate was maintained at 4.75 percent and the lending facility interest rate at 6.50 percent.

The bank has raised its interest rates by 100 basis points since May in order to stabilize the rupiah exchange rate amid escalating tensions in the Middle East.

The bank said the decision was consistent with the strategy to stabilize the rupiah exchange rate, maintain inflation within the 1.5 to 3.5 percent target range in 2026 and 2027, and support sustainable economic growth.

ING economist Deepali Bhargava expects BI to maintain its focus on exchange-rate stability.

As upside risks to inflation from higher fuel prices and a severe El Niño could add to domestic price pressures, the economist forecasts one additional 25 basis point rate hike before year-end.

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