Bank Indonesia Rate Hike Expectations Remain Amid Pressure on Rupiah
Dow Jones
Jul 23
0058 GMT - Bank Indonesia is still expected to raise interest rates by another 50 bps to 6.25% by the year-end, with the rupiah under pressure due to domestic policy concerns and renewed U.S.-Iran tensions, BMI says in a note. It expects persistent currency weakness despite recent intervention measures and policy tightening. Higher oil prices could widen Indonesia's import bill and fuel fiscal concerns, while lingering governance and policy uncertainty may continue to weigh on investor sentiment, it says. However, Indonesia's pro-growth stance is expected to limit the extent of further rate increases, BMI adds. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
July 22, 2026 20:58 ET (00:58 GMT)
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