Bank Indonesia Rate Decision - 25 August 2023

Policy rate stays at 5.75% as rupiah remains fragile

Bank Indonesia (BI) kept the benchmark 7-day reverse repo rate unchanged at 5.75% at its eighth Board of Governor meeting for this year, in line with house and market expectations

  • The Deposit Facility and Lending Facility rates were also kept at 5.00% and 6.50%, respectively.
  • BI statement: consistent with the monetary policy stance to ensure that inflation remains under control within the target range of 2.0% - 4.0% for the rest of 2023 and 1.5% - 3.5% in 2024. BI reiterated that the policy focuses on strengthening the rupiah’s value to mitigate the impact of global financial uncertainty.