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2025-09-17 16:08:11
Bank Indonesia unexpectedly cuts interest rates by 25 basis points to 4.75%, marking the third consecutive month of easing. (1) Bank Indonesia unexpectedly cut interest rates by 25 basis points to 4.75% at its September policy meeting, defying market expectations of maintaining the rate at 5.0% and marking the third consecutive month of rate cuts. (2) This is the sixth rate cut since September of last year, bringing the benchmark rate to its lowest level since October 2022. (3) The decision was based on expectations that inflation will remain within the target range of 2.5%±1% for 2025-2026, the stability of the rupiah exchange rate, and the need for continued support for economic growth. (4) Latest data shows that GDP grew by 5.12% year-on-year in the second quarter, the fastest growth in two years; annualized inflation fell slightly to 2.31% in August, remaining within the target range. (5) The overnight deposit rate was simultaneously lowered by 50 basis points to 3.75%, and the lending rate was lowered by 25 basis points to 5.50%.
