Bank Indonesia Could Deliver More Rate Hikes in 3Q to Stabilize Rupiah -- Market Talk
Dow Jones05-21 10:55
0255 GMT - Indonesia's central bank may raise rates by 25 bps twice more in 3Q, bringing the policy rate to 5.75%, as it prioritizes rupiah stability and inflation control, HSBC economists say in a note. Wednesday's larger-than-expected 50bp hike appears to be a response to sharp rupiah depreciation and narrowing interest-rate differentials with the U.S., they say. Sticky oil prices and imported inflation risks are also expected to maintain pressure on the currency and on prices. Indonesia's growth could stay below 5% in 2026 and 2027 amid tighter monetary policy and fiscal constraints, HSBC adds. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
May 20, 2026 22:55 ET (02:55 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments