World Economy

Indonesia Maintains Rates While Cutting Reserves and Raising Deposits

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Wednesday, October 21, 2026

Bank Indonesia maintained its benchmark interest rate while cutting reserve requirements and raising deposit rates. This policy mix addresses competing economic pressures following market turbulence tied to MSCI downgrade concerns. The central bank's approach balances economic expansion with currency defense. The strategy aims to support borrowers while protecting the rupiah from depreciation.

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