Today’s surprise 25 basis point interest rate hike by Bank Indonesia (BI) clearly indicates that the central bank’s main focus will be on supporting the currency and reducing the country’s external vulnerabilities. With downward pressure on the rupiah likely to resume over the coming months and the current account widening again, today’s hike is unlikely to be the last in the current cycle.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services