Central Bank Retains Benchmark Rate at 5.75%
Jakarta. Bank Indonesia decided on Thursday to retain the benchmark interest rate at 5.75 percent in “continued efforts to stabilize the rupiah exchange rate” and curb “imported inflation”.
“The decision to retain Bank Indonesia’s benchmark rate at 5.75 percent is consistent with the monetary policies aimed at keeping inflation at 3 percent, plus or minus 1 percentage point, for the rest of 2023 and next year,” Bank Indonesia Governor Perry Warjiyo said in Jakarta.
By keeping the benchmark rate unchanged, the central bank also intends to address any potential impacts stemming from uncertainties in global financial markets.
Market analysts had already predicted this decision, anticipating that the central bank would maintain the rate for the sake of macroeconomic stability.