JAKARTA, July 16 (Xinhua) -- Bank Indonesia cut its benchmark interest rate by 25 basis points to 5.25 percent during its Board of Governors Meeting held from Tuesday to Wednesday.
The central bank also lowered the deposit facility and lending facility rates to 4.50 percent and 6.00 percent, respectively.
"This decision is consistent with lower inflation projections for 2025 and 2026 within the target of 2.5±1 percent, the maintained stability of the rupiah in line with its fundamentals, and the need to continue supporting economic growth," central banker Perry Warjiyo said at a press conference on Wednesday.
Perry added that the central bank is optimizing accommodative macroprudential policies to boost credit disbursement and strengthen banking liquidity, while stabilizing the rupiah through forex market interventions and secondary market purchases of government securities.
He expressed confidence that the rupiah will remain stable through mid-July 2025, supported by foreign capital inflows and strengthened foreign exchange policies, with consumer inflation staying under control.
Bank Indonesia is also expanding its digital payment transformation, including cross-border QRIS partnerships with Japan and China, set to launch in August, supporting the growth of the electronic payment ecosystem.
With these measures, Bank Indonesia remains optimistic that its mix of monetary, macroprudential, and payment system policies will safeguard economic stability and reinforce growth recovery amid global pressures. ■
