Bank Indonesia Raises Rates in Emergency Move to Defend Rupiah

Jakarta, 10 June 2026 – Bank Indonesia has raised interest rates in a surprise emergency move to defend the rupiah, highlighting the pressure facing Asian central banks as currency weakness, global volatility and investor concerns collide.

The central bank lifted its benchmark seven-day reverse repo rate by 25 basis points to 5.50% at an unscheduled meeting on Tuesday. The decision came just weeks after Bank Indonesia delivered a larger-than-expected 50 basis point hike, showing how aggressively policymakers are trying to stabilise the currency.