Holds rates as Rupiah defence trumps growth
Bank Indonesia (BI) kept its policy rate unchanged at 4.75% at its fourth Board of Governors meeting of 2026, marking the sixth consecutive month of policy pause, in line with our view and market expectations
- Deposit and Lending Facility Rates were also maintained at 3.75% and 5.50%, respectively.
- Statement highlight: BI reiterated that “the decision is aimed at strengthening Rupiah stability amid deteriorating global conditions driven by the Middle East conflict, while keeping inflation within the 2026-2027 target of 1.5%-3.5%.” BI also emphasized readiness to tighten if needed, underscoring its commitment to Rupiah stability, while accommodative macroprudential and payment system policies continue to support growth.
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