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2026-02-17 07:35:44
Analysts at BNY Mellon expect the Indonesian central bank to maintain its policy rate at 4.75% on February 19, keeping its accommodative stance, but the threshold for further rate cuts remains high. The institution emphasizes that the Indonesian central bank's position has shifted from "comprehensive growth promotion" to focusing on the stability of the rupiah, including the possibility of large-scale foreign exchange intervention. High lending rates and administrative measures such as nickel production cuts have supported the rupiah exchange rate. The bank notes, "The Indonesian central bank is expected to remain vigilant amid continued volatility in local assets. However, this move can be seen as another tool to support the exchange rate—an administrative measure rather than direct intervention, the effects of which take time to materialize and are often initially overlooked."
