From Yahoo Finance: 2025-04-21 04:14:00

Bank Indonesia is expected to maintain interest rates to support the rupiah amid concerns of slowing economic growth due to U.S.-led trade policies. The currency has decreased by over 4% this year and faces pressure from President Prabowo Subianto’s fiscal plans and U.S. tariffs. Economists predict no rate cuts this week.

Finance Minister Sri Mulyani Indrawati stated that U.S. tariffs could reduce Indonesia’s economic growth by 0.3% to 0.5%. Negotiations for a trade deal with the United States are ongoing. Most economists forecast no change in Indonesia’s benchmark rates this week, with a potential 25 basis point cut expected in the future.

The Indonesian central bank may lower its key policy rate by 25 basis points to 5.50% this quarter and to 5.25% in the following quarter. Inflation is projected to average 2.1% this year and 2.7% next year, with economic growth estimated at 4.8% in 2025 and 4.9% in 2026, slightly below previous forecasts.



Read more at Yahoo Finance: Bank Indonesia to hold rates on April 23 as FX concerns outweigh growth risks