Indonesia central bank raises rates by 25 basis points

[JAKARTA] Indonesia’s central bank raised its benchmark rates by 25 basis points on Thursday (Jun 18), just a week after a surprise off-cycle rate hike, as it seeks to attract fresh capital inflows and halt selling in its battered rupiah and other assets.

Bank Indonesia raised the seven-day reverse repurchase rate to 5.75 per cent, the highest level since May 2025. Twenty of 35 economists in a Reuters survey had predicted the move; two expected a 50-basis-point increase and the other 13 expected no change.

BI also raised the overnight deposit facility rate and lending facility rates by the same amount to 4.75 per cent and 6.50 per cent.

The central bank has now hiked its policy rates by a total of 100 basis points in three moves over the past four weeks.

BI’s rare off-cycle increase last week reflected mounting urgency to stabilise the rupiah and anchor investor confidence, after the currency hit a series of record lows amid global volatility, capital outflows and rising domestic policy concerns. REUTERS