Indonesia's central bank unexpectedly raised its policy rate at its August meeting to curtail soaring inflation and strengthen the rupiah exchange rate.
The Board of Governors decided to raise the seven-day reverse repo rate by 25 bps to 3.75 percent, the Bank Indonesia said.
This was the first rate hike since 2018. The previous change in the BI rate was a quarter-point reduction in February 2020.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.