BI cuts its policy rate to 5.25% to support economic growth; trade deal with the US positive for Rupiah’s stability
- Bank Indonesia (BI) lowered its policy rate by 0.25 percent to 5.25 percent at its July 15-16, 2025 meeting, with an intent to bolster economic recovery amid weak domestic demand and global economic uncertainty.
- KResearch forecasts that BI is likely to cut the policy rate once more during the remainder of 2025 to boost domestic consumption and drive sustainable growth, provided that inflation stays within BI’s target range and the Rupiah remains stable.
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