Indonesia's central bank hikes key rate as rupiah weakens (original) (raw)

Xinhua
09 Jun 2026, 13:45 GMT+

JAKARTA, June 9 (Xinhua) -- Indonesia's central bank raised its benchmark interest rate on Tuesday to support the weakening Indonesian rupiah.

Bank Indonesia (BI) lifted its key BI-Rate by 25 basis points to 5.50 percent, while the deposit facility rate was raised to 4.50 percent and the lending facility rate to 6.25 percent.

BI Governor Perry Warjiyo said the move aimed to stabilize the rupiah and keep inflation within the government's target of 2.5 percent 1 percent for 2026-2027.

The increase is a further step to strengthen rupiah stabilization amid high global volatility caused by Middle East conflicts, the governor said.

The rupiah has recently weakened past 18,000 against the U.S. dollar, hitting a record low.