Indonesian Rupiah: BI holds rates to back IDR – BNY
Geoff Yu writes that Bank Indonesia (BI) kept its benchmark rate at 5.75% for a second month in Acting Governor Destry Damayanti’s first decision.
Bank Indonesia (BI) maintained its benchmark interest rate at 5.75% for the second consecutive month, during its inaugural decision under Acting Governor Destry Damayanti. The central bank's objective is to bolster the Indonesian Rupiah (IDR) stability, curb imported inflation and sustain growth amidst global market volatility and the ongoing tensions in the Middle East.
BI expects the Rupiah to strengthen, and it is prepared to utilize monetary tools, market interventions, and incentives for foreign inflows to support the currency. The bank also hinted at continued macroprudential support to maintain liquidity and lending levels.
The decision to keep the interest rate unchanged comes following Perry Warjiyo's departure and reflects a policy of continuity rather than a sudden move towards easing. BI has left its 2026 growth forecast unchanged, projecting it to remain between 4.9% and 5.7%, and reiterated its commitment to cooperate with the government.
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