{"id":500450,"date":"2026-06-19T07:08:32","date_gmt":"2026-06-19T07:08:32","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/500450\/"},"modified":"2026-06-19T07:08:32","modified_gmt":"2026-06-19T07:08:32","slug":"bi-announces-third-rate-hike-in-four-weeks-economy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/500450\/","title":{"rendered":"BI announces third rate hike in four weeks – Economy"},"content":{"rendered":"

ank Indonesia\u00a0on Thursday hiked interest rates for the third time in four weeks as the country looks to bolster its currency, which has taken a battering from surging energy costs caused by the Middle East war.<\/p>\n

It has been Asia’s worst-performing currency, according to financial outlet Bloomberg News, shedding around seven percent.<\/p>\n

BI\u00a0lifted its key interest rate by 25 basis points to 5.75 percent, bringing the total increase\u00a0to 1 percentage point over the past month.\u00a0<\/p>\n

The move came after it announced a surprise 50-basis-point hike on May 20 — the first in two years — and another of 25 points on Tuesday last week.<\/p>\n

“This increase is a follow-up step to further strengthen the stability of the rupiah\u2019s exchange rate amid persistently high global uncertainty,” Perry Warjiyo, the central bank governor, told a news conference.<\/p>\n

The rupiah tanked earlier this month to a record 18,209 per dollar before bouncing back after last week’s rate increase. It is now sitting around 17,800.<\/p>\n

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Indonesia is a net oil importer, but the government has insisted on leaving heavily subsidized fuel prices unchanged despite struggling with high costs. Consumer prices rose 3.08 percent on-year in May.<\/p>\n

The rupiah’s plunge since the turn of the year has come as the Indonesian stock market has lost about a third of its value as the economy struggles.<\/p>\n

Read also: Weakened rupiah disrupts business, education plans<\/a><\/p>\n

The economic strain has triggered student protests<\/a> across the country, demanding the government stop excessive spending, including the billion-dollar free-meals scheme.<\/p>\n

They also hit out at the government’s policy to raise the non-subsidized fuel by a third.<\/p>\n

The Philippine central bank also raised rates by 25 basis points to 4.75 percent — as expected — on Thursday amid soaring inflation caused by the spike in fuel costs.<\/p>\n

Consumer prices in the import-dependent archipelago surged 6.8 percent last month, slower than the previous month but well ahead of full-year targets. The bank said Thursday that the elevated cost of oil and fertilizer continued to drive high food and fuel prices.<\/p>\n

“Inflationary pressures remain strong,” it said in a statement.<\/p>\n

“Today\u2019s policy action will help keep inflation expectations anchored and mitigate the risk of second-round effects,” it added.<\/p>\n

Consultancy Capital Economics predicted a similar hike at the bank\u2019s next meeting in August, adding it believed headline inflation would drop if the recently brokered US-Iran deal holds.<\/p>\n","protected":false},"excerpt":{"rendered":"ank Indonesia\u00a0on Thursday hiked interest rates for the third time in four weeks as the country looks to…\n","protected":false},"author":2,"featured_media":500451,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[14709,24535,230133,88296,114,184,85,12980,46,157554],"class_list":["post-500450","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-bank-indonesia","tag-bi","tag-bi-rate-hike","tag-bi-rate","tag-business","tag-economy","tag-il","tag-interest-rate","tag-israel","tag-middle-east-war"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/500450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=500450"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/500450\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/500451"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=500450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=500450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=500450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}