Bank Indonesia raised its benchmark policy rate by 25 basis points to 6.25% at its April 2024 board meeting, delivering a surprise tightening measure aimed at stabilising the Indonesian rupiah, which had depreciated past 16,200 per US dollar in the weeks preceding the decision.
BANK INDONESIA'S STATED RATIONALE
Bank Indonesia described the increase as a pre-emptive and forward-looking step to strengthen rupiah stability against worsening global risks and to keep inflation within its 2.5% plus or minus 1% target in 2024 and 2025.