TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsBI sees no rate change until H2 2024 but keeps open mind to cutting sooner
Bank Indonesia (BI) expects to keep its benchmark interest rate at 6 percent for at least six more months to keep inflation at bay, in addition to ensuring rupiah stabilization.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Members of Bank Indonesia's board of governors pose for a photo at a press conference in the central bank's Jakarta headquarters on Dec. 12, 2023. (The Jakarta Post/Deni Ghifari)
B
ank Indonesia (BI) expects to keep its benchmark interest rate unchanged until the second half of next year to ensure inflation remains under control and the rupiah holds its exchange value.
In a press briefing following the central bank’s two-day monthly monetary policy meeting, BI Governor Perry Warjiyo announced that the BI rate would be kept at 6 percent for now, and probably throughout the first half of next year.
“If the rupiah stabilizes faster and inflation remains low, then the door to [a sooner cut] is open,” Perry told reporters on Thursday.
He said the rupiah had been strengthening, which could mitigate the risk of imported inflation.
Consumer price index (CPI) growth was expected to remain in the target range of 2.5 plus/minus 1 percent in 2024, based on current projections.
“Uncertainties in the global financial markets have started calming down. Not [gone altogether] but it will not get worse,” stated the governor.
The central bank believes that the federal funds rate (FFR) in the United States has reached a peak at its current level of 5.25 to 5.5 percent and that the US Federal Reserve (Fed) will keep it there throughout the first half of 2024.
