BI Rate Projected to Stay at 5.75 Percent Despite Fed Rate Hike

Bank Indonesia is expected to keep the BI Rate at 5.75% in September despite the Federal Reserve raising its policy rate by 25 bps to 3.75–4%. UOB economist Enrico Tanuwidjaja said BI has already tightened policy by 100 bps and is ahead of the Fed, while current domestic inflation is largely supply-driven. A stable BI Rate could support stable bond yields and bank lending rates. BI will announce its decision on September 23–24, 2026.