Financial News: Indonesia Holds Key Rate As Expected

Indonesia Holds Key Rate As Expected

01/21/2026 - 08:08:00 (RTTNews)

(RTTNews) - Indonesia's central bank left its interest rates unchanged as the current level supports stabilizing the currency and underpinning economic growth.

The Bank Indonesia board, governed by Perry Warjiyo, decided to hold the BI rate at 4.75 percent as expected.

The bank had reduced the benchmark rate by 125 basis points in 2025. The current level of 4.75 percent was the lowest since October 2022.

The deposit facility rate was maintained at 3.75 percent and the lending facility rate at 5.50 percent.

Economic growth was projected to be in the range of 4.7 percent to 5.5 percent in 2025. It was expected to improve to 4.9 percent to 5.7 percent this year, underpinned by increased domestic demand and other policy measures to stimulate growth. In December, consumer price inflation was 2.92 percent. The bank forecast inflation to remain low this year within the target range of 1.5 to 3.5 percent.

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