Indonesia Interest Rate

Last Release

Apr 24, 2024

Actual

6.25

Units In

Frequency

Daily

Next Release

May 22, 2024

Time to Release

27 Days 1 Hours

Highest	Lowest	Average	Date Range	Source
12.75 Dec 2005	3.5 Feb 2021	6.41 %	2005-2024	Bank Indonesia

In Indonesia the interest rate decisions are taken by The Central Bank of Republic of Indonesia. In April of 2016, policymakers announced the replacement of the official discount interest rate with new 7-day reverse repurchase rate in August 2016. This is the rate at which central banks lend or discount eligible paper for deposit money banks, typically shown on an end-of-period basis.

Latest Updates

The Bank Indonesia unexpectedly raised its key 7-day reverse repurchase rate by 25bps to 6.25% on its April 2024 meeting, compared to market expectations of no change. The rate is now at a new record high level since the benchmark was introduced in 2016, aiming to enhance stability of the rupiah exchange rate against the risks of a worsening global economy and ensure that inflation remains in line with 2.5 ± 1% target for 2024 and 2025. The Indonesian rupiah has touched its lowest level in four years this month, reflecting broader weakness in Asian foreign exchange markets due to a stronger US dollar and risk aversion sentiment, prompting the central bank to intervene to stabilize the currency. Also, inflation rate in Indonesia increased to 3.05% in March, the highest in seven months. Meanwhile, both the overnight deposit facility and the lending facility were also lifted by 25bps to 5.5% and 7%, respectively.