Insight

Weakening Rupiah Puts Interest Rate on Hold

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Algo Research Team


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Key Summary:


  • BI maintains rate at 6%
  • IDR has depreciated -5% vs. USD
  • Revisit rate cuts in 2025

The Indonesian central bank has maintained its policy rate this month, in line with consensus, and marks three consecutive months of steady rates.


Context: Bank Indonesia (BI) decided to keep interest rate at 6% in November 2024, despite the Federal Reserve’s decision to lower its policy rate.


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