Bank Indonesia Cuts Interest Rate by 25 Basis Points to 5.75%
JAKARTA, Investortrust.id – The Board of Governors Meeting of Bank Indonesia held on January 14–15, 2025, has decided to lower the benchmark interest rate by 25 basis points (bps) to 5.75%. The announcement was made by Bank Indonesia Governor Perry Warjiyo during a press conference at the central bank's headquarters in Jakarta on Wednesday, January 15, 2025.
"Based on a comprehensive assessment and projections of both global and domestic economic conditions, the Board of Governors has decided to reduce the BI Rate by 25 bps to 5.75%," Perry stated.
Along with the benchmark rate cut, the central bank also reduced the deposit facility and lending facility rates. Perry noted that the deposit facility rate has been lowered by 25 bps to 5%, while the lending facility rate has been reduced by 25 bps to 6.75%.
"This decision aligns with the continued low inflation forecast for 2025 and 2026, which remains within the target range of 2.5% plus or minus 1%. It also reflects the rupiah's stability, which remains consistent with fundamentals, ensuring effective inflation control within the target," he explained.
Bank Indonesia's benchmark interest rate has remained at 6% since September 2024. Previously, it had reached a peak of 6.25% from April to August 2024, maintaining that level for five consecutive months. The rate first hit 6% in October 2023 and stayed there until March 2024.