US Federal Reserve Cut Rates by 25bps in Sep-25

MACROECONOMY 
US Federal Reserve Cut Rates by 25bps in Sep-25 
The Fed lowered the federal funds rate by 25bps in Sep-25 to 4.00%– 4.25%, marking the first cut since Dec-24, in line with expectations. Governor Stephen Miran dissented, preferring a 50bps cut. The Fed projects an additional 50bps reduction by end-25 and a further 25bps cut in 2026. GDP growth forecasts were revised higher for 2025 (1.6% vs 1.4% Jun projection), 2026 (1.8% vs 1.6%), and 2027 (1.9% vs 1.8%). The unemployment rate outlook for 2025 remained at 4.5%, while 2026 was revised lower to 4.4% from 4.5%. (Trading Economics) 

Bank Indonesia Cut Rate 25 bps to 4.75% 
On 17 Sep-25, BI lowered its benchmark rate by 25 bps to 4.75%, pushing IHSG to close up 0.85% at 8,025.19 with IDR 14,545.58 tn market cap and IDR 18.27 tn daily transaction. (Kontan) 

Indonesia Loan Growth Rose to 7.56% in Aug-25 
Indonesia’s annual loan growth edged up to 7.56% in Aug-25 (vs Jul-25; 7.03%), after marking the slowest pace since Mar-22. The slight improvement came amid banks’ continued caution in extending credit and persistently high loan interest rates, resulting in undisbursed loan facilities of IDR 2,372.11 tn, or 22.71% of the available credit ceiling. BI still projects lending growth to remain within the 8%–11% range for 2025. (Trading Economics)
 

COMPANY 
Bank Rakyat Indonesia (BBRI) Disbursed IDR 114.28 tn KUR to 2.5 mn MSME Debtors until Aug-25 
BBRI distributed IDR 114.28 tn KUR to 2.5 mn MSME debtors during Jan–Aug 2025, equivalent to 65.31% of its 2025 KUR allocation of IDR 175 tn. The distribution was dominated by production sectors, with agriculture contributing IDR 50.95 tn or 44.58% of total KUR, in line with BBRI’s commitment to strengthen the real sector and support national food security. (Kontan)