23.09.202607:25:04UTC+00Bank Indonesia Keeps Rates Steady for 3rd Month

Bank Indonesia (BI) left its benchmark interest rate unchanged at 5.75% at its 23 September meeting, marking the third consecutive hold and aligning with market expectations. The decision came as the rupiah has recently strengthened, supported by renewed capital inflows following volatility in the first half of the year, and underscored the central bank’s focus on currency stability under newly appointed Governor Destry Damayanti.

Earlier this year, BI raised rates by a cumulative 100 basis points in May and June, lifting the policy rate to its highest level since April 2025 in an effort to attract foreign capital and bolster the rupiah. Annual inflation quickened to 3.19% in August but remained within BI’s 1.5%–3.5% target band. Looking ahead, the central bank expects inflation to stay within the government’s 2.5% ± 1% target range in both 2026 and 2027.

BI also held the rates on its overnight deposit and lending facilities steady at 4.75% and 6.50%, respectively.