Bank Indonesia Lifts BI-Rate 25 Bps to 5.5% in Off-Cycle Move as Rupiah Sells Off
Updated
Updated · Bloomberg · Jun 9
Bank Indonesia Lifts BI-Rate 25 Bps to 5.5% in Off-Cycle Move as Rupiah Sells Off
1 articles · Updated · Bloomberg · Jun 9
Summary
An unscheduled decision on Tuesday took Bank Indonesia’s benchmark rate to 5.5%, a surprise move made before the central bank’s June 17-18 policy review.
The 25-basis-point hike was aimed at supporting the rupiah after a market rout in Indonesian stocks and bonds triggered capital outflows.
Bank Indonesia had already tightened by a larger-than-expected 50 basis points in May, underscoring how quickly pressure on the currency has intensified.
The move signals policymakers are prioritizing currency stability and investor confidence as financial-market stress spills across Indonesian assets.