Indonesia's central bank, Bank Indonesia, maintains interest rates unchanged despite rupiah exchange rate volatility, aiming to stabilize the rupiah and curb imported inflation. The rupiah's exchange rate has been influenced by market sentiment and the Federal Reserve's tightening cycle. The central bank expects GDP growth to range between 4.5% and 5.3% in 2023, with stronger gains forecasted for 2024. The rupiah's recent gains are attributed to a market's risk-on sentiment, easing exports decline, and a booming tourism sector.

Indonesia's Central Bank Holds Rates