Thursday, 21 August 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Indonesia Unexpectedly Cuts Key Rate by 25 Bps
Thursday, 21 August 2025 02:02 WIB | ECONOMY |Asia

Bank Indonesia unexpectedly cut its benchmark interest rate by 25 bps to 5.0% at its August 2025 policy meeting, following a 25 bps cut the previous month and defying market expectations to hold rates steady. This marked the fifth rate cut since last September, bringing the benchmark to its lowest level since October 2022.

The decision reflects projections that inflation for 2025–2026 will remain within the central bank's target range of 2.5% ± 1%, a stable Rupiah exchange rate, and ongoing efforts to support economic growth. Recent data showed GDP grew by 5.12% yoy in Q2—its highest pace in two years. Meanwhile, annual inflation rose to 2.37% in July from 1.87% in June, marking a one-year high but still within the central bank's target range.

Economic growth for 2025 is projected to be slightly above the midpoint of the 4.6% to 5.4% range, at around 5.1%. Additionally, the overnight deposit and lending facility rates were lowered by 25 basis points to 4.25% and 5.75%, respectively.

Source: Trading Economi

RELATED NEWS
UK inflation picks up to hotter-than-expected 3.8% in July...
Wednesday, 20 August 2025 13:11 WIB

The U.K.'s annual inflation rate hit a hotter-than-expected 3.8%in July, according to data released by the Office for National Statistics (ONS) on Wednesday. Economists polled by Reuters had anticipa...

US hikes steel, aluminum tariffs on imported appliances, railcars, EV parts...
Wednesday, 20 August 2025 05:36 WIB

The U.S. Commerce Department said on Tuesday it is hiking steel and aluminum tariffs on more than 400 products including wind turbines, mobile cranes, appliances, bulldozers and other heavy equipment,...

Trump says no ground troops, but maybe air support, to back Ukraine peace deal...
Wednesday, 20 August 2025 04:42 WIB

U.S. President Donald Trump said on Tuesday he ruled out putting U.S. troops on the ground in Ukraine but said the United States might provide air support as part of a deal to end Russia's war in the ...

Trump meets Zelenskiy, says Putin wants war to end, mulls trilateral talks...
Tuesday, 19 August 2025 05:51 WIB

President Donald Trump said Monday he believes Russian President Vladimir Putin wants to end the war in Ukraine, suggesting potential progress toward peace negotiations. Trump made the remarks during...

Trump tells Zelenskiy US would help with Ukraine's security in a peace deal...
Tuesday, 19 August 2025 05:24 WIB

U.S. President Donald Trump told President Volodymyr Zelenskiy on Monday that the United States would help guarantee Ukraine's security in any deal to end Russia's war there, though the extent of any ...

LATEST NEWS
Oil prices climb 2% on drop in US crude inventories as investors focus on Ukraine peace push

Oil prices climbed about 2% on Wednesday on a bigger-than-expected weekly drop in U.S. crude inventories as investors awaited the next steps in talks to end the Ukraine war, with sanctions on Russian crude remaining in place for now. Brent crude...

Gold price climbs as Trump threatens Fed independence

Gold prices are rising on Wednesday after US President Donald Trump continued to exert pressure on the Federal Reserve (Fed) as he demands Fed Governor Lisa Cook resign due to an investigation of mortgage fraud. Threats of curtailing the Fed's...

Dollar falls as Trump calls on Fed's Cook to resign

The dollar fell on Wednesday after U.S. President Donald Trump called on Federal Reserve Governor Lisa Cook to resign, but pared gains after minutes from the Fed's latest meeting showed that only two policymakers supported an interest rate cut last...

POPULAR NEWS
Fed's Powell may defy rate cut bets at Jackson Hole as inflation fight isn't over
Tuesday, 19 August 2025 04:02 WIB

Federal Reserve Chairman Jerome Powell is set to speak at the annual central bank symposium this week amid growing bets that a rate cut is nearly...

Trump Broadens 50% Tariffs on Steel, Aluminum Products
Monday, 18 August 2025 07:31 WIB

The Trump administration has expanded its 50% tariffs on steel and aluminum imports to cover hundreds of additional products. In a Federal Register...

Asia-Pacific markets trade mixed as investors await details of U.S.-Ukraine talks
Monday, 18 August 2025 07:38 WIB

Asia-Pacific markets traded mixed Monday , after the U.S.-Russia summit concluded without a ceasefire. Japan's Nikkei 225 benchmark rose 0.62%,...

Asia-Pacific markets mostly fall as investors assess outcome of Trump-Zelenskyy meeting
Tuesday, 19 August 2025 07:52 WIB

Asia-Pacific markets mostly fell Tuesday as investors await the outcome of the talks between U.S. President Donald Trump, Ukraine's President...