0231 GMT - Bank Indonesia is expected to continue raising its policy rate to support the rupiah, UOB economists Enrico Tanuwidjaja and Vincentius Ming Shen say in a note. UOB expects the central bank to increase the benchmark interest rate to 6.0% by end-2026. Bank Indonesia is increasingly resorting to a broader set of tools beyond direct foreign-exchange intervention, including rate increases. The government is expected to issue more foreign-currency-denominated bonds to boost reserves, although this could add to future debt obligations, they add. All these are necessary measures to bolster the rupiah, UOB adds. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
June 08, 2026 22:31 ET (02:31 GMT)
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