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19 Mar 2025

International Economy

BI maintains its policy rate at 5.75%, prioritizing currency stability and preventing capital outflows (Business Brief No.4140 Full Ed.)

คะแนนเฉลี่ย
  • Bank Indonesia (BI) held its policy rate steady at 5.75 percent in its meeting on March 18-19, 2025, prioritizing the Rupiah’s stability and the risk of capital outflows over immediate economic stimulus.
  • The Indonesian stock market temporarily halted trading on March 18 after falling below the 5-percent threshold, led by a sharp decline in large-cap bank stocks amid economic concerns, the Rupiah’s depreciation, and uncertainty surrounding monetary and fiscal policies.
  • KResearch views that BI’s decision is a key challenge in maintaining currency stability amid lackluster economic outlook and ongoing capital outflows. These factors limit the central bank’s ability to cut its policy rate, requiring appropriate timing for any economic stimulus.

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International Economy