Indonesia's central bank has maintained its key interest rate for a seventh consecutive meeting, avoiding both a rate cut that could endanger the already fragile Indonesian rupiah and a rate hike that might dampen market confidence and economic growth.

The bank kept its benchmark rate at 4.75% on Wednesday, a decision that aligns with the expectations of all 39 economists surveyed by Bloomberg. This move underscores the institution's consistently emphasized commitment to ensuring market stability.

Bank Indonesia Governor Perry Warjiyo stated that conflicts in the Middle East are exacerbating the deterioration of the global economic outlook and are putting pressure on emerging market currencies, including the rupiah. He indicated that this situation demands more robust fiscal and monetary policy responses.

During a press conference, the Governor confirmed that the central bank has already intensified its interventions in the foreign exchange market to maintain the stability of the rupiah's exchange rate. He affirmed the bank's readiness to implement necessary monetary policy measures to support the local currency and keep inflation within the target range.