FOREX TradingCharts.com

Financial News: Bank Indonesia Holds Interest Rate Steady At 5.5%

Bank Indonesia Holds Interest Rate Steady At 5.5% As Expected; Hints At Reduction

06/18/2025 - 08:56:00 (RTTNews)

(RTTNews) - Indonesia's central bank left its benchmark interest rate unchanged on Wednesday after a quarter-point reduction in May and hinted at further reduction to support economic growth.

The Bank Indonesia Board, led by Governor Perry Warjiyo, maintained the BI rate at 5.50 percent. The bank had reduced the rates twice this year, in May and January. The deposit facility interest rate was retained at 4.75 percent and the lending facility interest rate at 6.25 percent.

The bank said it will continue to monitor the room for lowering the interest rate in order to encourage economic growth, while maintaining inflation in line with its target and the stability of the currency exchange rate.

Bank Indonesia observed that economic growth needs support amid global uncertainty due to the protective trade policies of the U.S. and geopolitical tensions.

The bank forecast economic growth this year to be 4.6-5.4 percent, and inflation is expected to be 1.5-3.5 percent this year and next.

With real policy rates still close to 4 percent, the bank is still likely to deliver considerable easing of 75 basis points by the first quarter of 2026, ING economist Deepali Bhargava said.

Rising risks to growth from tariffs and an uncertain investment climate, combined with domestic policy uncertainty, increase the risks of higher-than-expected rate cuts, the economist added.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2025 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Luxembourg Inflation Rises To 1-Year High (07 hr(s), 17 min(s), 04 sec(s) ago)
(RTTNews) - Consumer price inflation in Luxembourg accelerated in June to the highest level in one ...Full Story»

Denmark Industrial Production Rises 0.1% (08 hr(s), 29 min(s), 04 sec(s) ago)
(RTTNews) - Denmark's industrial production increased for the second straight month in May, th ...Full Story»

Eurozone Retail Sales Drop For First Time In 5 Months; Services Output Fall (08 hr(s), 50 min(s), 04 sec(s) ago)
(RTTNews) - Euro area retail sales decreased for the first time in five months and services produc ...Full Story»

Iceland Trade Deficit Narrows In June (09 hr(s), 20 min(s), 04 sec(s) ago)
(RTTNews) - Iceland's foreign trade deficit decreased in June from a year ago, figures from St ...Full Story»

Czech Industrial Output Growth Improves; Trade Surplus Rises (09 hr(s), 55 min(s), 04 sec(s) ago)
(RTTNews) - The Czech Republic's industrial production expanded at the fastest pace in nearly ...Full Story»

Eurozone Investor Confidence Strongest In More Than 3 Years (10 hr(s), 38 min(s), 04 sec(s) ago)
(RTTNews) - Eurozone investor confidence rose to the highest level in more than three years in Jul ...Full Story»

German Industrial Production Rebounds In May (11 hr(s), 05 min(s), 04 sec(s) ago)
(RTTNews) - Germany's industrial production rebounded in May driven by robust demand for autom ...Full Story»

Romania Retail Sales Growth Eases To 2.7% (12 hr(s), 21 min(s), 04 sec(s) ago)
(RTTNews) - Romania's retail sales growth eased for the eighth straight month in May, though m ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Luxembourg Inflation Rises To 1-Year High

07/07/2025 - 09:24 AM (RTTNews)
(RTTNews) - Consumer price inflation in Luxembourg accelerated in June to the highest level in one ...Full Story>>

Denmark Industrial Production Rises 0.1%

07/07/2025 - 08:12 AM (RTTNews)
(RTTNews) - Denmark's industrial production increased for the second straight month in May, th ...Full Story>>

Eurozone Retail Sales Drop For First Time In 5 Months; Services Output Fall

07/07/2025 - 07:51 AM (RTTNews)
(RTTNews) - Euro area retail sales decreased for the first time in five months and services produc ...Full Story>>

Iceland Trade Deficit Narrows In June

07/07/2025 - 07:21 AM (RTTNews)
(RTTNews) - Iceland's foreign trade deficit decreased in June from a year ago, figures from St ...Full Story>>

Czech Industrial Output Growth Improves; Trade Surplus Rises

07/07/2025 - 06:46 AM (RTTNews)
(RTTNews) - The Czech Republic's industrial production expanded at the fastest pace in nearly ...Full Story>>

Do not sell my personal information

Copyright © 2025. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.