Bank Indonesia holds interest rate at 6 pct amid geopolitical uncertainty

JAKARTA, Oct. 16 (Xinhua) — Indonesia’s central bank has maintained the interest rate at 6 percent after reducing it by 0.25 percentage points last month, said Governor of Bank Indonesia Perry Warjiyo on Wednesday.
At a two-day meeting from Tuesday to Wednesday, the Board of Governors of Bank Indonesia also decided to keep the deposit rate unchanged at 5.25 percent and the lending rate at 6.75 percent.
“This decision is consistent with the monetary policy direction to ensure that inflation remains controlled within the target range of 1.5 percent to 3.5 percent for 2024 and 2025, while supporting sustainable economic growth,” said Perry at a press conference.
The central bank is focusing on short-term monetary policy and strengthening the stability of the rupiah exchange rate amid geopolitical conflicts that could lead to uncertainty in global financial markets.
Perry noted that a loose macroprudential policy remains in place to encourage bank lending to priority industries for growth and job creation, while adhering to prudential principles. ■