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The global trade war and escalating conflicts in the Middle East have led the Indonesian Central Bank to maintain its Interest Rate.
Gate News bot message, in the face of the global trade war and escalating conflicts in the Middle East, Bank Indonesia has maintained the interest rate unchanged, pausing rate cuts to support the Indonesian Rupiah.
Bank Indonesia maintained its benchmark interest rate at 5.5% on Wednesday, consistent with the expectations of 26 out of 35 economists surveyed by Bloomberg. Other economists predicted that after lowering the policy rate in May, policymakers would continue to ease monetary policy.
Governor Perry Warjiyo ( stated at a press conference that global uncertainty remains high, and the domestic economy needs further support. He indicated that the bank loan interest rates need to continue to decline to support credit growth and the national economy.
He stated that the Central Bank of Indonesia expects the economy to grow by 4.6% to 5.4% this year, and the Indonesian rupiah is expected to remain stable. The inflation rate should remain within the target range of 1.5% to 3.5% in 2025 and 2026.
Source: Bloomberg