Bank Indonesia unexpectedly raises rates to support rupiah
Rate hike comes on top of central bank’s continued FX intervention amid a strong dollar
Bank Indonesia (BI) raised its benchmark interest rate today (April 24) for the first time in six months to support the rupiah, a move that surprised most market analysts.
The central bank’s board of governors decided to raise the BI rate by 25 basis points to 6.25%, after keeping the policy rate unchanged for five consecutive meetings since October 2023. It also raised the deposit rate and the lending facility rate each by 25bp, to 5.5% and 7%, respectively.
Only six of 35 economists polled by Re
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