Rupiah strengthens after second increase in two weeks
An employee counts rupiah banknotes at a currency exchange office in Jakarta. (Photo: Reuters)
JAKARTA - Indonesia’s central bank raised its benchmark interest rates by 25 basis points on Thursday, just a week after a surprise off-cycle hike, as it seeks to attract fresh capital and halt selling in its battered rupiah and other assets.Bank Indonesia raised the seven-day reverse repurchase rate to 5.75%, 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% and 6.50%.
The central bank has now increased its policy rates by a total of 100 basis points in three moves over the past four weeks.
