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View all search resultsBank Indonesia’s benchmark rate remains at 6.25 percent for now, and the central bank expects room for a reduction to open up only in the fourth quarter, despite recent signals pointing to sooner interest rate cuts by the United States Federal Reserve.
Indonesia’s consumer price index (CPI) growth has been steadily within acceptable boundaries for almost a year, yet Bank Indonesia (BI) hiked its key interest rate twice during that time, and analysts believe the central bank will remain cautious despite inflation being under control.
Bank Indonesia (BI) has raised its key interest rates in what it calls a “preemptive measure” in light of global risks caused by the uncertain outlook of monetary policy in the United States and geopolitical tension in the Middle East.
In a widely expected decision, Bank Indonesia has held its benchmark interest rate at 6 percent after weighing macroeconomic conditions and prospects, including its projection of monetary policy by the United States Federal Reserve.
According to Bank Indonesia (BI) projections, the United States Federal Reserve (Fed) will cut its benchmark interest rate by less than one percentage point this year. Nevertheless, the central bank expects the rupiah to strengthen versus the dollar.
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