The Board of Governors of Indonesia’s Central Bank (Bank Indonesia) lowered the interest rate by 0.25% to 6.00% yesterday, 18 September 2024.
The central bank also reduced the Deposit Facility (DF) rate and Lending Facility (LF) rate by 0.25% to 5.25% and 6.75% respectively. The decision is consistent with low and stable inflation projected in 2024 and 2025 within the 2.5%±1% target corridor.
This is the central bank’s first interest rate cut in over three years, aimed at stimulating growth in Southeast Asia’s largest economy.
The central bank is expected to continue monitoring opportunities to lower the policy rate in line with low projected inflation, stability and appreciation of the Indonesian Rupiah (IDR), as well as the ongoing efforts required to accelerate economic growth.
