FinNotes

Bank Indonesia delivers surprise 25-bp rate hike to 5.50% as rupiah hits record lows

Bank Indonesia raised its benchmark rate by 25 basis points to 5.50% in an unexpected off-cycle move after the rupiah weakened more than anticipated and hit 18,190 per U.S. dollar. The central bank set the deposit facility at 4.50% and the lending facility at 6.25%, and announced measures aimed at supporting the currency and foreign inflows.