JAKARTA (Reuters) -- Bank Indonesia held its key interest rates unchanged for a second straight policy review on Wednesday, as expected, opting to continue with efforts to reinforce the impact of past rate cuts as the rupiah comes under renewed pressure.
Bank Indonesia (BI) kept the benchmark seven-day reverse repurchase rate at 4.75%, as predicted by a majority of economists polled by Reuters.
The overnight deposit facility and lending facility rates were left steady at 3.75% and 5.50%.
BI has slashed the main rates by a total of 150 bps since September 2024, aiming to stimulate growth in Southeast Asia's biggest economy.
Gov. Perry Warjiyo told a press conference that the decision is in line with its short-term focus on maintaining the stability of the rupiah.
Economic growth slowed slightly in the third quarter to an annual 5.04%, data showed earlier this month, making it harder for the government to achieve its full-year target of 5.2%.
The government has launched fiscal stimulus measures with the aim of raising 2026 growth to 5.4% and eventually meeting President Prabowo Subianto's 2029 target of 8%.
Complicating BI's rate-cutting cycle is the rupiah's weakness. The rupiah is the worst-performing emerging Asian currency against the dollar this year, and has steadily weakened since early October to trade near an all-time low.
The annual inflation rate has also risen, to 2.86% in October, the highest in 16 months but well within BI's target range of 1.5% to 3.5%.
