# Indonesia's rate cuts aren't working as banks hold line, firms baulk | Reuters

> Bank Indonesia unexpectedly held its policy rate at 4.75% on Wednesday, against market expectations of a fourth straight cut. The bank said it would prioritise supporting the rupiah, and the article notes a weak response to stimulus and slow credit growth.

- Date: 2025-10-24 · published 2025-10-24T12:00:00.000Z
- Category: macro · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/22739-indonesia-s-rate-cuts-aren-t-working-as-banks-hold-line-firms-baulk-reuters
- Commodities: [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md)

## Why it matters

Holding rates high keeps Indonesian borrowing costs elevated and slows feed and livestock investment. It also supports the rupiah, which lowers imported feed costs, so the net effect on feed prices is limited.

## Read by commodity

- USDIDR: bearish ▼

## Sources

- reuters.com: https://www.reuters.com/world/asia-pacific/indonesias-rate-cuts-arent-working-banks-hold-line-firms-baulk-2025-10-24/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.