Bank Indonesia Holds Rate at 5.75% Amid Rupiah Risks

Bank Indonesia kept its benchmark seven-day reverse repo rate at 5.75% on Sept. 23, meeting expectations and leaving rates unchanged for a third consecutive meeting. The central bank is assessing measures to support the rupiah, which has faced renewed pressure from higher oil prices and U.S. yields but recently benefited from capital inflows. The decision also leaves the overnight deposit facility at 4.75% and the lending facility at 6.5%. Inflation rose to 3.19% in August but remained within Bank Indonesia’s 1.5%–3.5% target range, while the bank maintained its 2026 economic growth forecast of 4.9%–5.7%.