Bank Indonesia holds rates, signals focus on rupiah stability amid capital outflows

[JAKARTA] Bank Indonesia (BI) held its benchmark rate on Wednesday (Nov 19) for the second consecutive meeting since October, signalling a renewed focus on stabilising the rupiah amid persistent capital outflows.

The central bank kept the policy rate at 4.75 per cent, in line with Bloomberg’s surveyed market expectations; it kept its other key rates steady –5.50 per cent for the lending facility, and 3.75 per cent for the deposit facility.

Governor Perry Warjiyo said the move underscores BI’s short-term focus on supporting currency stability and attracting foreign portfolio inflows.