BI holds key interest rate at 5.75 percent
Bank Indonesia (BI) has kept its benchmark interest rate unchanged despite high global energy prices and a recent hike by the United States Federal Reserve (Fed).
Indonesia's central bank, the Bank Indonesia (BI), has maintained its benchmark interest rate at 5.75 percent, despite surging global energy costs and a recent increase by the United States Federal Reserve (Fed). BI Governor Destry Damayanti announced the decision during a press conference on Wednesday, revealing that the rate will stay unchanged since June.
The move, already anticipated by numerous analysts, is in line with the strategy to stabilize the rupiah exchange rate amidst strong external pressures. The central bank aims to keep inflation within the government's target range of 2.5 plus/minus 1 percent in 2026 and 2027, as well as promote sustained economic growth.
BI has kept its key interest rate steady for three consecutive months after implementing multiple rate hikes totaling 100 basis points (bps) in May and June. These hikes were necessary to stabilize the weakened rupiah amid heightened global volatility triggered by the Iran war. The currency had reached a historic low of 18,209 per dollar in June, but has since rebounded and is currently trading around 17,800 per dollar.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
