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Economics2h 18m ago
Bank Indonesia has announced an emergency rate increase of 25 basis points, bringing the benchmark rate to 5.5%, in response to a "more-than-expected" weakening of the rupiah.
Indonesia
Who
Bank Indonesia, Perry Warjiyo, President Prabowo Subianto, DBS Research, Sri Mulyani Indrawati, Glenny Kairupan, Thomas Djiwandono
What
Bank Indonesia has announced an emergency rate increase of 25 basis points, bringing the benchmark rate to 5.5%, in response to a "more-than-expected" weakening of the rupiah.
When
Thu, 11 Jun 2026 09:00:00 GMT · 2h 18m ago
Where
Indonesia ·
Why
The rate hike was prompted by the rupiah's severe weakening, further destabilized by the war in West Asia and heightened global turmoil, with the central bank aiming to stabilize the exchange rate and signal hawkishness.
The Frontline Impact
How this affects you
Indonesia's central bank is aggressively raising interest rates to combat a rapidly depreciating rupiah, which has fallen to levels not seen since the 1997-1999 Asian financial crisis. This action, amid global turmoil and concerns over President Prabowo's economic policies, is likely to increase borrowing costs for businesses and contribute to inflation, affecting the nation's economic stability.
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