Bank Indonesia keeps interest rates steady to support the undervalued rupiah
The central bank kept its benchmark rate at 4.75 percent today to stabilize the currency. Governor Perry Warjiyo noted the rupiah remains undervalued.
Bank Indonesia (SY:BI) held its benchmark 7-day reverse repurchase rate at 4.75% today, marking the fifth consecutive policy review in which the rate remained unchanged. This decision follows a previous 150 basis-point easing cycle and comes as the central bank signaled stepped-up currency intervention. Officials cited the rupiah as undervalued after recent market turmoil, which saw the currency slump to a record low.
