Financial News: Bank Indonesia Holds Key Rate; Raises Deposit Facility

Bank Indonesia Holds Key Rate; Raises Deposit Facility Rate

10/21/2026 - 09:06:00 (RTTNews)

(RTTNews) - Bank Indonesia maintained its benchmark rate but raised the deposit facility rate by 25 basis points on Wednesday amid financial market uncertainty.

The board of governors, governed by Destry Damayanti, decided to hold the BI rate at 5.75 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 lending facility interest rate was retained at 6.50 percent but the deposit facility rate was raised by 25 basis points to 5.00 percent.

The policy decision came after the global index provider MSCI warned it may downgrade Indonesia's stock market to "standalone" from the emerging-market status, which led to a selloff in equities.

The central bank said it will continue to strengthen its monetary policy mix, including stabilizing the rupiah exchange rate, to keep inflation within the target of 1.5 to 3.5 percent in 2026 and 2027.

Although inflation rose to 3.28 percent in September, it remained within the target range. Moreover, core inflation slowed to 2.84 percent.

Bank Indonesia projected Indonesia's economic growth in 2026 to be in the range of 4.9-5.7 percent.

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