JAKARTA, May 20 (Xinhua) -- Bank Indonesia on Wednesday raised its benchmark interest rate, the BI-Rate, by 50 basis points to 5.25 percent, ending a streak of eight consecutive months of holding rates unchanged.
The decision was announced following the central bank's two-day Board of Governors meeting held from May 19 to 20.
Bank Indonesia said the rate hike was aimed at strengthening the stability of the Indonesian rupiah amid worsening global conditions triggered by the conflict in the Middle East, while ensuring inflation remains within the target range of 2.5 percent, plus or minus 1 percentage point, for 2026 and 2027.
The decision came as market expectations remained mixed. A CNBC Indonesia poll of 15 financial institutions showed that nine had forecast a 25-basis-point increase to 5 percent, while six expected the central bank to maintain the rate at 4.75 percent. ■
