Holds rates as rupiah faces global uncertainty
Bank Indonesia (BI) kept its policy rate at 5.75% in its second Board of Governor meeting this year, in line with both house and market expectations
- Deposit and Lending Facility Rates: unchanged at 5.00% and 6.50%, respectively.
- BI statement: The decision aims to keep inflation within the 1.5% - 3.5% target range for 2025 and 2026, support Rupiah stability amid global uncertainty and sustain economic growth.
GDP growth forecast and CPI target for 2025 remain unchanged with domestic demand driving growth
- GDP: BI maintained its 2025 GDP growth forecast at 4.7% - 5.5% following sustained growth in 2024 (5.0%; 2023: 5.0%). Growth will be supported by higher investment, sustained household consumption, and stronger exports.
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