Rupiah Finds Support on Central Bank Policy Pause

2026-01-21 08:27 By Farida Husna 1 min. read

The Indonesian rupiah traded near IDR 16,930 per dollar on Wednesday afternoon, after touching an intraday low of beyond IDR 16,970, as Bank Indonesia unanimously kept its key rate at 4.75% for a fourth straight meeting, in line with estimates.

Governor Perry Warjiyo said the decision was aimed at supporting rupiah stability and enhancing monetary policy transmission.

The central bank has already cut rates by a cumulative 150bps between September 2024 and September 2025 to spur economic momentum.

Recent data indicate the easing cycle is gaining traction, with loan growth rising to a ten-month high of 9.69% in December, though undisbursed credit facilities stay elevated, highlighting lingering caution among consumers.

Bank Indonesia expects the rupiah to stabilize, while signaling scope for further easing supported by a mild inflation outlook for 2026–2027.

Globally, the dollar index steadied near 98.5 as investors awaited President Trump’s address at the World Economic Forum in Davos.



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