Indonesia's central bank raised interest rates for a third policy session in a row, as expected, to rein in the rising inflation and to strengthen the weakening rupiah exchange rate, which was caused by increased capital outflows.
The Board of Governors decided to raise the seven-day reverse repo rate, or BI rate, by 50 bps to 4.75 percent, the Bank Indonesia said on Thursday.
Borrowing costs are at their highest since 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.