Bank Indonesia lowered its 7-day reverse repurchase rate by 25 bps to 4.0 percent during its July meeting, bringing borrowing costs to the lowest since at least 2016, and agreed to expand bond purchases to support the economy amid the coronavirus pandemic. BI has cut rates by a total of 100 bps this year, on top of 100 bps in reductions in 2019. The central bank also slashed its overnight deposit facility and lending facility rates by 25 bps to 3.25 percent and 4.75 percent, respectively. In June, headline inflation rate declined to 1.96 percent, the lowest since May 2000 and below the central bank's target of 2-4 percent.
Interest Rate in Indonesia averaged 6.89 percent from 2005 until 2020, reaching an all time high of 12.75 percent in December of 2005 and a record low of 4 percent in July of 2020. This page provides - Indonesia Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Indonesia Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on August of 2020. source: Bank Indonesia
Interest Rate in Indonesia is expected to be 3.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Indonesia to stand at 3.75 in 12 months time. In the long-term, the Indonesia Interest Rate is projected to trend around 3.75 percent in 2021 and 4.25 percent in 2022, according to our econometric models.