BI Holds Benchmark Interest Rate at 5.75 Percent in July 2026 RDG

Bank Indonesia (BI) has decided to hold its benchmark interest rate (BI-Rate) at 5.75 percent following the monthly Board of Governors Meeting (RDG) for July 2026, which concluded on Wednesday. The deposit facility rate was also maintained at 4.75 percent, while the lending facility rate remained at 6.5 percent. BI Governor Perry Warjiyo stated during an online press conference that the central bank is expanding incentive policies and other measures to increase foreign portfolio investment inflows and strengthen rupiah exchange rate stability. The policies also aim to accelerate the deepening of the money market and foreign exchange market, as well as to increase liquidity and address liquidity segmentation in the money market and banking sector. Perry emphasised that the decision on the BI-Rate and the accompanying policies are an integrated part of Bank Indonesia’s consistent policy mix. He noted that these measures are taken to further reinforce rupiah exchange rate stability amidst persistently high global uncertainty, and to maintain inflation in 2026 and 2027 within the government’s target range of 2.5 percent, plus or minus 1 percent.