The Central Bank of Indonesia has decided to keep the key interest rate unchanged at 6.25%, aligning with the expectations of most analysts. The possibility of a rate cut will be discussed in the fourth quarter of this year, depending on the economic situation.
The Governor of the Central Bank emphasized that the strengthening of the rupiah has positively impacted the country’s economic stability. A stronger currency helps lower prices and reduces inflation, particularly in relation to goods, which is influenced by imports.
In the third quarter of 2023, inflation in Indonesia reached a new low since February 2022, standing at 2.13%. At the same time, the rupiah appreciated by 5% against the U.S. dollar, with the exchange rate currently at 15,480 rupiah per dollar.
These measures and policy decisions are aimed at stabilizing the economy and maintaining a favorable financial environment in the country.
Sources: channelnewsasia.com
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