BI Holds Rate at 4.75%, Eyes on Future Cuts

Gotrade News - Bank Indonesia (BI) hit the pause button again, keeping its benchmark rate locked at 4.75% this month. It’s a strategic move to defend the Rupiah amidst lingering global economic uncertainty.

This is the fifth straight meeting with no major policy shifts from the central bank. Investors are now on the lookout for any signs of monetary easing later this year.

Key Takeaways:

• BI Rate stays at 4.75% to prioritize Rupiah stability

• The door for rate cuts is open, but it strictly depends on data

• The market sees the meeting as a positive sign of central bank independence

Governor Perry Warjiyo emphasized that the current priority is reinforcing monetary policy to keep the currency stable. This strategy is key to hitting inflation targets while nudging long-term growth.

Speaking to the press on Thursday (Feb 19), Perry confirmed the decision focuses on exchange rate stability.

However, the door isn't closed on future cuts if macro conditions play nice. The central bank will remain data-dependent, watching inflation and growth numbers closely before making a move.

According to Investing, most market analysts had already priced in this hold.

The Next Trigger

Deputy Governor Thomas Djiwandono’s presence at the meeting was a green flag for market players. Observers view it as a solid sign of the central bank's independence in calling the shots.

For investors, stable rates offer some short-term certainty on borrowing costs. That said, stocks might trade sideways until we get a concrete signal on rate cuts.

If the Rupiah stays steady in the coming months, we could see the easing cycle resume. You’ll want to watch upcoming inflation data—it’s the main indicator for BI’s next play.

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Reference:

• Bloomberg Technoz, BI Rate Ditahan 4,75% Bulan Ini, Kapan Bisa Turun?. Accessed on February 19, 2026

• Investing, Bank sentral Indonesia pertahankan suku bunga di 4,75% untuk kelima kalinya. Accessed on February 19, 2026

• Featured Image: Shutterstock