Bank Indonesia hikes, who will be next?

Bank Indonesia delivered an unexpected 50bps rate hike earlier, driven primarily by concerns over rupiah weakness. We now see a further 50bps of tightening by end-2026. Attention now turns to meetings next week in Sri Lanka and Korea. We expect the Central Bank of Sri Lanka (CBSL) to hike by 50bps amid rising inflation and continued currency pressure. In contrast, the Bank of Korea (BoK) is likely to leave rates on hold, as inflation remains contained and domestic demand headwinds are mounting.

Please join us online at 09:00 BST / 16:00 SGT on Thursday for a 30-minute briefing exploring how Asian economies are navigating the ongoing Middle East crisis and the recent surge in global energy prices. We will examine how central banks are responding, assess the impact on economic activity, and consider what a further escalation in energy prices could mean for the region’s growth and inflation outlook.