Indonesian Rupiah: BI holds rates to back IDR – BNY

FXStreet Insights Team FXStreet

Geoff Yu writes that Bank Indonesia (BI) kept its benchmark rate at 5.75% for a second month in Acting Governor Destry Damayanti’s first decision. The central bank aims to support Indonesian Rupiah (IDR) stability, contain imported inflation and sustain growth amid global volatility and Middle East tensions. BI expects the Rupiah to strengthen and will use monetary tools, intervention and inflow incentives to support it.

Policy continuity under Damayanti

"Bank Indonesia (BI) kept its benchmark policy rate unchanged at 5.75% for a second straight month in its first decision under Acting Governor Destry Damayanti."

"The central bank said the hold is aimed at supporting rupiah stability, containing imported inflation, and preserving sustainable growth amid heightened global volatility and Middle East tensions."

"BI expects the rupiah to continue strengthening and will use monetary tools, market intervention, and foreign inflow incentives to support the currency. It also signaled continued macroprudential support to maintain liquidity and lending."

"BI left its 2026 growth forecast unchanged at 4.9%–5.7% and reiterated coordination with the government."

"The decision signals policy continuity after Perry Warjiyo’s exit, with no abrupt shift toward easing."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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