BMI Expects Bank Indonesia to Raise Rates by Another 50 Basis Points to 6.25%

BMI said Bank Indonesia is expected to raise rates by another 50 basis points to 6.25% before year-end as the rupiah comes under pressure. According to Jin10, the firm said the currency is expected to remain weak despite recent intervention measures and tighter policy, while higher oil prices could increase Indonesia's import spending and add to fiscal concerns. BMI added that lingering governance and policy uncertainty may continue to weigh on investor sentiment, but Indonesia's growth-supportive stance is expected to limit further rate increases.