Indonesia’s c. bank holds rates at 6.25%

Indonesia’s central bank, Bank Indonesia (BI), kept its key interest rate unchanged at 6.25 per cent on Wednesday, as predicted by economists.

Governor Perry Warjiyo stated that the decision aims to keep inflation in check for 2024 and 2025, with a current focus on stabilising the rupiah and attracting investments.

The central bank has been actively managing the rupiah’s volatility through interventions in currency and bond markets, successfully maintaining inflation within target range since last year.

The rupiah has experienced volatility this year due to a strong US dollar and upcoming government changes, but has recently recovered around two per cent after hitting a four-year low in June.

Attribution: Reuters