Indonesia's central bank on Friday decided to maintain benchmark interest rates unchanged at 6.5% as expected.
However, Bank Indonesia ordered lenders to set aside more cash in reserves in order to curb lending. Commercial lenders will be required to keep 8% of their deposit as primary reserves, up from the previous requirement of 5%.
The bank also set a loan-to-deposit ratio of 78-100%.
Consumer price inflation in South East Asia's largest economy jumped 6.4% in August, a 16-month high, and above the bank's 4-6% target range.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.