Indonesia's central bank, Bank Indonesia, opted to keep its interest rate steady during its meeting on Wednesday, marking a consecutive decision following September's rate reduction.
Under the leadership of Governor Perry Warjiyo, the Board of Governors decided to maintain the seven-day reverse repo rate at 6.00 percent. The board consistently outlined that this decision aligns with its policy objectives, aiming to keep inflation within the 1.5 to 3.5 percent target range for both this year and the next, while also promoting sustainable economic growth.
In October, consumer price inflation decreased to 1.71 percent from 1.84 percent in the previous month.
The board emphasized attentiveness to currency fluctuations, indicating that future policy adjustments will be influenced by the rupiah's performance.
Economist Gareth Leather from Capital Economics suggested that Bank Indonesia is likely to resume its easing cycle once there is increased confidence in the currency's stability. Leather anticipates the next rate cut to occur in the second half of 2025.
