Bank Indonesia lifts key rate to 5.75% in third hike in 4 weeks
Why it matters: The move extends a 100-basis-point tightening push to steady the rupiah after it hit a record low this month.
Bank Indonesia raised its benchmark seven-day reverse repurchase rate by 25 basis points to 5.75% on Thursday, its third increase in four weeks, as policymakers moved again to shore up the rupiah and stem pressure on Indonesian assets. The central bank also lifted the deposit facility rate to 4.75% and the lending facility rate to 6.50%. Governor Perry Warjiyo said the step was meant to strengthen the currency and keep inflation within the government target for 2026 and 2027. The rupiah, which touched 18,190 per US dollar on June 8, strengthened to about 17,725 after the decision. BI said net foreign inflows reached $3.9 billion in the second quarter through June 15, reversing a $0.8 billion outflow in the first quarter.