Bank Indonesia Reduces Benchmark Interest Rate to 5 Percent
(MENAFN) Bank Indonesia (BI) reduced its benchmark interest rate by 25 basis points on Wednesday, bringing it down to 5 percent in a move aimed at bolstering economic momentum.
Alongside the main rate cut, the central bank also adjusted its deposit facility rate to 4.25 percent and the lending facility rate to 5.75 percent.
“This decision to lower the BI’s benchmark interest rate is consistent with the projected low inflation rate for 2025 and 2026, the maintained stability of the rupiah exchange rate, and the need to stimulate economic growth,” said BI Governor Perry Warjiyo during a press briefing.
This marks the third rate reduction by Bank Indonesia in 2025, following earlier cuts to 5.5 percent in May and 5.25 percent in July.
The central bank’s latest policy easing is designed to encourage credit expansion and business activity, while maintaining financial system stability amid persistent global economic uncertainty.
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