Indonesia’s central bank left its benchmark interest rate unchanged on Wednesday as the policy board assessed that the current stance is consistent with the direction of monetary policy to ensure controlled inflation within the target, and to support sustainable economic growth.
The Board of Governors of Bank Indonesia, led by Governor Perry Warjiyo, decided to maintain the seven-day reverse repo rate for the second straight meeting at 6.00 percent.
At its August meeting, the bank unexpectedly lifted the interest rate by a quarter-point.
“This decision is consistent with the direction of monetary policy to ensure controlled inflation within the target of 2.5±1 percent in 2024 and 2025, and to support sustainable economic growth, ” the bank said in a statement.
The recent data showed that Indonesia’s inflation slowed to 1.84 percent in September from 2.12 percent in August, as inflation was recorded low across all components.
Looking ahead, the bank expects inflation to remain under control within its target.
The economy is projected to grow in the range of 4.7 to 5.5 percent this year and expand further in 2025.
Economic growth is predicted to remain good in the fourth quarter of 2024, supported mainly by increased investment and good household consumption, as well as increased government spending at the end of the year.
Besides, the Rupiah exchange rate is predicted to be stable in line with attractive yields, low inflation, and the continued good prospects for Indonesia’s economic growth, as well as Bank Indonesia’s commitment to maintaining economic stability.
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