Bank Indonesia keeps its benchmark rate at 6% amid growing pressure on the rupiah

[JAKARTA] Indonesia’s central bank chose to keep its benchmark interest rate unchanged on Wednesday (Oct 16) in response to growing pressure on the rupiah following last month’s unexpected cut.

Bank Indonesia (BI) maintained its benchmark interest rate at 6 per cent, in line with the expectations of the majority of economists surveyed by Bloomberg. It also kept the deposit facility rate and lending facility rate unchanged at 5.25 per cent and 6.75 per cent, respectively.

In September, the central bank surprised markets by starting an easing cycle before the US Federal Reserve made its move.