Financial News: Bank Indonesia Keeps Key Rates Unchanged

Bank Indonesia Keeps Key Rates Unchanged

(RTTNews) - Bank Indonesia left its interest rates unchanged for the second consecutive meeting on Wednesday, to stabilize currency and to maintain inflation within the target range.

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

The deposit facility rate was retained 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 remains consistent with efforts to strengthen the stability of the Rupiah exchange rate from the impact of high global turmoil due to the war in the Middle East, maintain the achievement of the inflation target of 1.5 to 3.5 percent this year and next, and support sustainable economic growth.

The bank said economic growth is forecast to remain strong, underpinned by the implementation of government stimulus measures. GDP growth is projected to be in the range of 4.9-5.7 percent this year.

Further, the bank said it will continue to strengthen its monetary policy mix to keep inflation within the target in 2026 and 2027, including stabilizing the Rupiah exchange rate to mitigate the global spillover impact of imported inflation.

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