Bank Indonesia will continue monitoring the transmission effectiveness of accommodative monetary policy, economic growth, and inflation, as well as rupiah exchange rate stability, to consider further room for BI-Rate reductions.
Indonesia’s central bank, Bank Indonesia (BI), decided on 21- 22 October 2025 to hold its key interest rate (BI-Rate) at 4.75% after three consecutive cuts. BI also decided to maintain the Deposit Facility (DF) rate at 3.75% and the Lending Facility (LF) rate at 5.50%.
The decision is consistent with low inflation, projected in 2025 and 2026 within the 2.5±1% target corridor, ongoing efforts to maintain rupiah exchange rate stability in line with economic fundamentals, as well as synergy to strengthen economic growth.
Bank Indonesia will continue monitoring the transmission effectiveness of accommodative monetary policy, economic growth, and inflation, as well as rupiah exchange rate stability, to consider further room for BI-Rate reductions.
Earlier, Bank Indonesia lowered the benchmark seven-day reverse repurchase rate by 25 basis points to 4.75% on September 17 September 2025.
