Indonesia’s central bank held its policy rate steady at 6.25%, signaling a cautious approach to potential rate cuts later in the year to support the rupiah amid economic risks from twin deficits in the budget and current account. Governor Warjiyo emphasized ongoing interventions in the FX market and the issuance of high-yielding securities to attract foreign investment. Inflation is expected to remain within the central bank’s target range of 1.5%-3.5% for this year and the next.