Holds rate at 6.25% to safeguard rupiah and control inflation
Bank Indonesia (BI) kept its policy rate at 6.25% during its seventh Board of Governor meeting this year, meeting market expectations
- The Deposit Facility and Lending Facility rates were also kept at 5.50% and 7.00%, respectively.
- BI statement: The decision is “consistent with pro-stability monetary policy as a preemptive and forward-looking measure to ensure inflation remains under control within the target of 1.5% - 3.5% in 2024 and 2025.” Notably, the statement also added a new sentence specifically focusing on the rupiah, stating "the focus of monetary policy in the short term is directed at strengthening the effectiveness of rupiah exchange rate stabilization and attracting foreign capital inflows."
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