Bank Indonesia to Hold Rates at 4.75 Percent Through 2026

Bank Indonesia will likely keep rates at 4.75 percent this week. Analysts cite inflation risks from the Iran war as the main reason for delaying any cuts.

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The central bank of Indonesia is expected to maintain its benchmark interest rate at 4.75% during its upcoming policy meeting. This decision follows a shift in economic sentiment as geopolitical tensions between Iran and Israel trigger energy price volatility and heighten inflation risks, putting additional pressure on the national currency.

Pedestrians walk past the main office of the Indonesian central bank in Jakarta, a scene captured during a period of previous economic assessment. REUTERS/Darren Whiteside
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