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Bank Indonesia Holds BI Rate at 5.75%

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Story summary
  • Bank Indonesia kept the benchmark BI Rate at 5.75%.
  • It left the deposit rate at 4.75% and the lending rate at 6.5%.
  • The hold aims to stabilize the rupiah amid volatile markets, high energy prices, and tighter foreign monetary policies.
  • August inflation rose to 3.19%, staying within the 1.5%–3.5% range and the 2.5% ± 1% target.
  • Bank Indonesia projected 2026 GDP growth between 4.9% and 5.7%.