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Bank Indonesia holds rates at 5.75% to support rupiah stability

The central bank said it expects the Indonesian rupiah to strengthen and plans to use monetary tools, market intervention, and foreign inflow incentives.

Reported · Written up by our desk · Central Banks

Bank Indonesia kept its benchmark interest rate at 5.75% for a second straight month, according to FXStreet, as Acting Governor Destry Damayanti made her first policy decision.

FXStreet reported that Bank Indonesia is aiming to support Indonesian rupiah (IDR) stability, contain imported inflation, and sustain economic growth amid global volatility and Middle East tensions.

The central bank expects the rupiah to strengthen and said it will use monetary tools, market intervention, and foreign inflow incentives to help support the currency.

Bank Indonesia also signaled continued macroprudential support to maintain liquidity and lending, FXStreet added.

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