Heteronomics Archive

November 20, 2024

Indonesia: Policy Rate Held At 6.0% (Consensus 6.0%) in Nov-24

Bank Indonesia held the BI-Rate at 6.00%, aligning with expectations, citing controlled inflation within its 2.5% ±1% target and global economic uncertainty as critical factors influencing its cautious stance.
The central bank's policy framework prioritises Rupiah stability amid geopolitical risks and external pressures, supported by robust foreign reserves of $151.2 billion and macroprudential measures encouraging credit growth in priority sectors.
Future rate adjustments will depend on inflation trends, external shocks, and global market dynamics, with monetary and fiscal policy synergy essential to sustaining economic resilience and growth into 2025.

October 16, 2024

Bank Indonesia kept the BI-Rate at 6.00%, aligning with market expectations, focusing on inflation control within the 2.5% ±1% target and maintaining Rupiah stability amid global uncertainties.
The central bank’s cautious stance reflects concerns about geopolitical risks and global market volatility, while future rate decisions will hinge on inflation trends, exchange rate stability, and economic growth prospects.
Ongoing policy measures aim to reinforce external stability with strategic currency interventions and supportive macroprudential policies to bolster domestic growth drivers.

September 18, 2024

Bank Indonesia unexpectedly reduced its policy rate by 25bps to 6.00% amid controlled inflation and the need to stimulate economic growth, particularly domestic demand.
The central bank's decision is also influenced by a more benign global financial environment, with declining inflation and monetary easing in advanced economies leading to increased foreign capital inflows.
The stability of the Rupiah and healthy capital inflows provide room for further monetary easing, while macroprudential policies aim to support key sectors and boost economic growth.

August 21, 2024

Bank Indonesia’s decision to keep the BI-Rate steady at 6.25% aligns with expectations, reinforcing a pro-stability stance to manage inflation and Rupiah stability amid global uncertainties.
The easing of global financial market uncertainty amid solid domestic growth influences interest rate decisions that focus on balancing inflation control and sustaining economic momentum.
Bank Indonesia’s commitment to Rupiah stabilization and maintaining inflation within the target range remains central to its monetary policy, supported by effective interventions and optimized monetary operations.