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Bank Indonesia expected to hold benchmark rate at 5.75%

ING expects Bank Indonesia to prioritize rupiah stability and rely more on non-rate tools such as SRBI yields and FX intervention rather than an immediate hike.

Reported · Written up by our desk · Central Banks

ING expects Bank Indonesia to keep its benchmark interest rate unchanged at 5.75% this week, with rupiah stability the priority and no immediate rate increase in view, according to an ING outlook cited by FXStreet.

The note points to a shift in how BI manages policy, highlighting a growing reliance on non-rate tools such as SRBI yields and FX intervention, as well as the impact of a leadership transition at the central bank.

FXStreet also frames the view as continuity being the key message, which it says reduces the likelihood of an August move.

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