Bank Indonesia Holds Rates Steady as Rupiah Extends Three-Day Decline
Key Facts
Bank Indonesia decided to keep its benchmark interest rate unchanged during its latest meeting. FXStreet reported that the USD/IDR pair rose for the third consecutive day, trading around 18,040 during European hours on October 21, 2026.
The central bank maintained the interest rate at 5.75% on October 21, 2026, matching the previous level but falling short of the 6% forecast. This decision maintained downward pressure on the Indonesian Rupiah as the US Dollar showed continued strength.
Latest Updates · 1
- Notable·
Update: Bank Indonesia projected the current account deficit to widen by 2026, potentially increasing external funding requirements. These forecasts coincide with additional pressures from MSCI downgrade consultations, further complicating the outlook for the local currency.