Bank Indonesia Governor Signals Potential Rate Cut in 2026

Jakarta, VIVA – Bank Indonesia’s Board of Governors meeting on 18 and 19 February 2026 decided to hold the BI Rate at 4.75 per cent, maintaining the Deposit Facility rate at 3.75 per cent and the Lending Facility rate at 5.5 per cent.

Nevertheless, BI Governor Perry Warjiyo said the central bank is keeping open the possibility of cutting the benchmark interest rate during 2026.

According to Perry, the scope for a BI Rate reduction is genuinely warranted, as it aligns with inflation projected to remain low this year and the need to bolster economic growth.

“Regarding the direction of interest rate policy going forward, we still see room for a rate cut as remaining open,” Perry said during a press teleconference on Thursday, 19 February 2026.

However, Perry stressed that any monetary easing would continue to take into account various aspects of global dynamics, alongside the latest economic data developments.

He added that BI currently assesses the global economic outlook as being on a slowing trend, accompanied by financial market uncertainty that remains considerably elevated.

Perry therefore affirmed that future interest rate policy would be pursued on a data-dependent basis, with the central bank continuously monitoring a range of economic indicators from both the domestic and external spheres.

“And of course we will be data-dependent, where we will keep monitoring whether there is an opportunity going forward to realise room for a rate cut, or otherwise,” he said.