The central bank lifts its benchmark rate by 25 basis points to curb inflation and stabilize the rupiah amid currency interventions.
Bank Indonesia increased its benchmark interest rate by 25 basis points to 5.75% on June 18, matching market expectations. The move aims to control inflation and support the Indonesian rupiah, which has faced volatility against the USD.
The decision follows a prior rate of 5.5% and aligns with consensus forecasts. The central bank noted inflation remains under control, while the rupiah has shown signs of stabilization, partly due to intensified currency interventions.
The USD/IDR pair traded near 17,820 after the announcement. Bank Indonesia also reported outstanding SRBI rupiah notes at 1,021.1 trillion rupiah, with non-resident investors holding 238.1 trillion rupiah.