Financial News: Indonesia Central Bank Resumes Policy Easing

Indonesia Central Bank Resumes Policy Easing

05/21/2025 - 07:57:00 (RTTNews)

(RTTNews) - Indonesia's central bank reduced its interest rate by a quarter-point on Wednesday, in order to stabilize the currency and to drive economic growth.

The Bank Indonesia Board, led by Governor Perry Warjiyo, decided to cut the BI rate to 5.50 percent from 5.75 percent.

The bank had previously lowered the rate in January, which was the first cut since September 2024.

The deposit facility interest rate was trimmed by 25 bps to 4.75 percent and the lending facility interest rate to 6.25 percent.

The bank said it will continue to guide the monetary policy in such a way as to maintain inflation within the target range, stabilize the rupiah exchange rate and drive economic growth.

The bank forecast Indonesia's economic growth to be in the range of 4.6-5.4 percent this year, slightly lower than the previous forecast range of 4.7-5.5 percent.

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