19.02.202607:57:51UTC+00Indonesia Leaves Rates Unchanged

Bank Indonesia left its benchmark interest rate unchanged at 4.75% in February 2026, marking the fifth consecutive meeting without a change and aligning with market expectations. The decision aims to stabilize the rupiah amid ongoing global financial market volatility, while keeping inflation within the central bank’s 2026–2027 target range and sustaining economic growth. The rupiah continues to trade near a record low as investors weigh the risk of potential downgrades to Indonesia’s equity market classification by MSCI Inc. and to its sovereign credit rating by Moody’s Ratings. At the same time, annual inflation accelerated to 3.55% in January 2026, the highest reading since May 2023. Looking ahead, Bank Indonesia expects inflation in both 2026 and 2027 to remain within its 2.5% ± 1% target band. The central bank also kept its economic growth projections unchanged at 4.7%–5.5% for 2025 and 4.9%–5.7% for 2026. In addition, it maintained the overnight deposit facility rate at 3.75% and the lending facility rate at 5.50%.