Bank Indonesia (BI) unexpectedly kept its benchmark interest rate unchanged at 4.75% during its October 2025 policy meeting, defying expectations for a 25 bps cut, following a similar reduction in September. The benchmark rate remains at its lowest level since October 2022, after the central bank lowered rates by a total of 150 bps since September last year. The decision reflects the central bank’s projections that inflation for 2025–2026 will remain within its target range of 2.5% ± 1%, along with a stable rupiah exchange rate and continued efforts to support economic growth. Recent data showed that GDP grew by 5.12% yoy in Q2, the fastest pace in two years, while annual inflation accelerated to 2.65% in September, the highest since May 2024, though still within BI’s target range. BI now expects GDP growth to exceed the midpoint of its 4.6%–5.4% forecast range. BI also kept both the overnight deposit facility rate and the lending facility rate steady at 3.75% and 5.50%, respectively.