Bank Indonesia (BI) has reduced its benchmark rate, the BI 7-day reverse repo rate, by 0.25 percentage points to 5.75%. This decision reflects a comprehensive assessment of global and domestic economic conditions and prospects, and takes into account the low inflation outlook for 2025 and 2026. Through this rate cut, BI aims to maintain its target inflation range of 2.5% ± 1%, stabilize the Indonesian rupiah exchange rate, and promote economic growth. The BI Governor stated that the central bank will continue to adjust its monetary policy going forward to achieve inflation targets, stabilize the rupiah exchange rate, and support economic growth.
