Indonesia's central bank decided to hold its policy rate at 5.75%, in line with market expectations, at its September 23 meeting, the first official meeting under the leadership of Destry Damayanti, the country's first female central bank governor. The monetary policy committee also kept the overnight deposit rate at 4.75% and the liquidity lending rate at 6.50%. Destry said at her first in-person press conference in a year and a half that holding rates this time was aimed at stabilising the rupiah, keeping inflation within its target range, and supporting economic growth. The rupiah strengthened 0.36% against the US dollar after the decision was announced, following a period in which the central bank had raised rates by a total of 100 basis points through three hikes between May and June to stem the currency's slide to a record low. Meanwhile, headline inflation accelerated to 3.19% in August but remained within the central bank's target range of 1.5% to 3.5%. The central bank also kept its GDP growth forecast for 2026 at 4.9% to 5.7% and slightly raised its 2027 forecast to 5.2% to 6.0%.
Bank Indonesia held rates to stabilize the rupiah, which strengthened 0.36% against the dollar after the decision.
Bank Indonesia held its policy rate at 5.75%, keeping the benchmark steady and signaling stability, which supports bond prices (yields down).
