Indonesian Interest Rate Cut

July 16, 2025

With that trade deal secured, Bank Indonesia cut its interest rate today by 25 basis points to 5.25%. The rate reduction had been expected in light of in-target Indonesian inflation and a stable rupiah. At 5.25%, the new rate level is its lowest since December 2022 and down from the 6.25% peak maintained from April into September of last year. Current CPI inflation in the economy of 1.9% lies in the lower half of the 1.5-3.5% target range and has been below the mid-point of that band since June 2024.

Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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This entry was posted on Wednesday, July 16th, 2025 at 7:09 am and is filed under Central Bank Watch. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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