Financial News: Bank Indonesia Unexpectedly Holds Key Rates

Bank Indonesia Unexpectedly Holds Key Rates

07/22/2026 - 07:34:00 (RTTNews)

(RTTNews) - Bank Indonesia unexpectedly maintained its interest rate on Wednesday as policymakers assess the impact of previous three rate hikes.

The board of governors, governed by Perry Warjiyo, decided to hold the BI rate at 5.75 percent. The bank was expected to lift the rate by 25 basis points. 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 forecast the economy to expand in the range of 4.9 percent to 5.7 percent. Although inflation rose to 3.34 percent in June, it remains within the target of 1.5 percent to 3.5 percent.

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