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Rupiah steadies after Bank Indonesia holds BI rate at 5.75%

Bank Indonesia also left the deposit facility at 4.75% and the lending facility at 6.50%, a decision analysts say supports Rupiah stability and helps keep inflation contained.

Reported · Written up by our desk · Central Banks

Societe Generale analysts Galvin Chia and Kunal Kundu said Bank Indonesia’s decision to keep the BI rate unchanged at 5.75% supports Indonesian rupiah stability and inflation control. They noted deposit and lending facility rates were also left unchanged.

In their view, the outcome was marginally positive for IDR foreign exchange and yields, even as they described the policy pause as prudent but uncomfortable. They pointed to the central bank’s first policy meeting under governor nominee Destry as a key signal of continuity.

The analysts said the lack of surprises, alongside the steadier tone coming after last week’s presidential budget speech, added incremental positives in a market that had recently seen negative policy developments.

FXStreet’s broader market context also cited US dollar weakness tied to a Treasury plan to increase liquidity support buyback operations for longer-dated nominal securities, with investors later looking to FOMC minutes for further clues.

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