The Indonesian central bank keeps the key interest rate unchanged to support the Indonesian rupiah.

The Indonesian central bank kept its benchmark interest rate unchanged to support the Indonesian rupiah. This week, due to ongoing fiscal concerns and heightened worries about the central bank's independence, the Indonesian rupiah fell to a historic low. The Bank of Indonesia on Wednesday kept its benchmark interest rate unchanged at 4.75% for the fourth consecutive month, in line with the expectations of 32 economists surveyed by Bloomberg News. Governor Perry Warjiyo said at a press conference that geopolitical turmoil and US tariff hikes have increased global uncertainty, boosted the value of the US dollar, and triggered capital outflows from emerging markets. He also stated before announcing the interest rate decision, "This situation requires vigilance and strong policy measures to enhance the domestic economy's resilience to global spillover effects and accelerate economic growth." The Indonesian rupiah erased its losses against the US dollar after the decision was announced.