Indonesia's Central Bank Expected to Raise Rates 50 Basis Points to 6.25% by Year-End

According to BMI on July 23, Indonesia's central bank is expected to raise rates by 50 basis points to 6.25% before year-end amid rupiah depreciation driven by policy concerns and renewed U.S.-Iran tensions. BMI anticipates the currency will remain weak despite recent intervention measures and policy tightening, with rising oil prices likely to increase import expenses and heighten fiscal worries.
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