Jakarta, July 17 -- Bank Indonesia (BI) on Wednesday lowered its key interest rate or policy rate by 25 basis points to 5.25 percent, citing easing inflation pressure and the need to sustain economic growth.

Following a two-day meeting of its board of governors, held on July 15-16, 2025, Bank Indonesia announced here that the benchmark BI-Rate has been cut to 5.25 percent.

Meanwhile, the deposit facility rate has been reduced to 4.5 percent and the lending facility rate to 6.0 percent.

"The decision is consistent with our forecast that inflation in 2025 and 2026 will remain within our target of 2.5 percent plus or minus one percent," BI Governor Perry Warjiyo said.

He added that the move also reflects the stability of the rupiah excha...