Jakarta: Bank Indonesia (BI) has maintained its benchmark policy rate at 4.75 per cent, citing heightened global uncertainty while keeping the door open for potential easing. BI governor Perry Warjiyo stated that the decision reflects the need to preserve financial stability amid persistent external risks, even as inflation remains low and economic growth requires continued support. According to BERNAMA News Agency, Perry Warjiyo announced during an online press conference broadcast live on BI's YouTube account that the central bank decided to keep the policy rate unchanged after two days of discussion. Despite holding rates, Perry emphasized that the central bank still sees room for further rate cuts, contingent on incoming data and global developments. Perry cautioned that policy direction would remain data-dependent given elevated uncertainty in global markets. He projected that Indonesia's economic expansion in the first quarter of 2026 would remain strong, supported by seasonal consumption and coordina ted policy stimulus, noting that high population mobility would boost household spending during significant celebrations. The central bank governor highlighted that monetary stimulus through interest rates and liquidity expansion, alongside government fiscal stimulus, would further underpin growth momentum. He reported that the transmission of earlier monetary easing had begun to lower bank lending rates, with new rates declining by 40 basis points from 9.20 per cent at the beginning of 2025 to 8.80 per cent in January of this year. Perry stressed the need for efforts to reduce deposit and lending rates to encourage higher credit growth supporting sustainable economic expansion. He noted that the cumulative 125 bps reduction in BI's rate in 2025 and liquidity expansion had contributed to lower market rates. On the rupiah, Perry explained that exchange rate movements were influenced by both fundamental and technical factors. He noted that domestic indicators such as inflation, growth, and yields suggest the currency should be more stable and trend stronger, though global risk premiums have generated short-term pressure. Perry expressed confidence that the rupiah would eventually align with its fundamentals, adding that foreign portfolio flows have remained positive over the past two months, supporting exchange rate stability while domestic liquidity remains ample. The central bank has increased market intervention to stabilize the exchange rate in both the offshore NDF market and the domestic market.