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2025-12-17 15:59:02
[Bank Indonesia Keeps Interest Rates Unchanged for Third Consecutive Meeting] ⑴ At its December policy meeting, Bank Indonesia kept its benchmark interest rate at 4.75% for the third consecutive time, in line with market expectations. This move aims to support the rupiah exchange rate despite signs of slowing economic growth. ⑵ This decision follows a cumulative 150 basis point rate cut since September of last year, aimed at supporting economic growth and bringing interest rates to their lowest level since October 2022. ⑶ This decision reflects the central bank's view that, supported by measures to stabilize the rupiah and sustain economic growth, inflation in 2025-2026 will remain within the target range of 2.5% plus or minus 1 percentage point. ⑷ Latest data shows that GDP grew by 5.04% year-on-year in the third quarter, a slowdown from the two-year high reached in the second quarter; while the annual inflation rate in November slowed to 2.72% from an 18-month high of 2.86% in October, remaining within the central bank's target range. ⑸ Bank Indonesia stated that there is still room for rate cuts in a low-inflation environment, but the timing and magnitude will depend on the situation.
