Jakarta. Bank Indonesia (BI) held its benchmark rate at 4.75% for a seventh straight month, prioritizing rupiah stability as global risks intensify, particularly from Middle East tensions.

The decision was made during the central bank’s April 21–22 policy meeting, extending a pause that has been in place since the last rate cut in September 2025. Since September 2024, BI has lowered rates by a cumulative 150 bps, bringing the policy rate to its lowest level since 2022.

Alongside the benchmark rate, BI kept the deposit facility at 3.75% and the lending facility at 5.5%. Governor Perry Warjiyo said the current policy stance is focused on safeguarding rupiah stability while ensuring inflation stays within the 2.5±1% target range for 2026–2027.

“Going forward, BI stands ready to further strengthen monetary policy as needed to maintain rupiah stability and keep inflation within the 2026 and 2027 targets,” Perry said during a virtual press briefing on Wednesday.

Despite holding rates, BI continues to ease macroprudential measures to support credit growth in the real sector. It is also accelerating payment system digitalization to sustain economic activity and strengthen financial infrastructure resilience.

“The direction of our policy mix — monetary, macroprudential, and payment systems — is aimed at maintaining stability while supporting economic growth,” Perry added.

Economists broadly expected the move. Josua Pardede said BI’s priority is clearly tilted toward rupiah stability rather than further monetary easing.

He said that room for rate cuts in 2026 is narrowing due to persistent external pressures, including elevated energy prices, geopolitical risks, and the potential widening of the current account deficit.

“Maintaining the current rate level helps preserve yield differentials with other countries, curb capital outflows, and anchor inflation expectations,” Josua said.