Indonesia raises rates in surprise move to prop up rupiah
Bank Indonesia increased its benchmark interest rate by 25 basis points to 5.50% during an unexpected off-cycle meeting on Tuesday. The central bank aims to stabilize the rupiah after the currency hit record lows against the dollar amid Middle East volatility and rising domestic spending concerns.
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Bank Indonesia raised its benchmark interest rate by 25 basis points to 5.50% during an unexpected off-cycle meeting on Tuesday morning. This surprise move follows a 50 basis point hike in May as the central bank attempts to reverse an 8% year-to-date currency decline. The intervention highlights the struggle to stabilize the rupiah against rising global volatility and domestic fiscal concerns.
