Bank Indonesia surprises markets with aggressive rate hike

Bank Indonesia
Bank Indonesia has raised the benchmark interest rate three times in six weeks
Christopher Jeffery

Bank Indonesia has decided to raise its benchmark interest rate by a higher-than-expected 50 basis points and rolled out three macro-prudential policies in an attempt to stem local currency weakness while spurring growth.

The seven-day reserve repo rate is now 5.25%, up from 4.75%, after the two-day policy meeting ended today (June 29). Although a hike was widely expected, most analysts predicted a 25bp increase.

“The [rate hike] is Bank Indonesia’s pre-emptive, front-loading and ahead-of-the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: