FX.co ★ Indonesia Keeps Rates Steady for 2nd Month

Bank Indonesia (BI) decided to keep its benchmark interest rate steady at 4.75% during its policy meeting in November 2025, a move that was widely anticipated. This rate remains at its lowest since October 2022, following a series of cuts totaling 150 basis points since September of the previous year. The decision signals the central bank’s commitment to maintaining inflation within the target range of 2.5% ± 1% for 2025–2026, bolstered by a stable rupiah and ongoing efforts to support economic growth. Recent figures reveal that GDP expanded by 5.04% year-on-year in the third quarter, slightly cooling from the two-year peak observed in the second quarter. Meanwhile, annual inflation edged up to 2.86% in October, marking its highest level since April 2024, yet it remains within BI’s target. Additionally, the overnight deposit facility rate and the lending facility rate were left unchanged at 3.75% and 5.50%, respectively.