- The rupiah is near record lows as elevated global yields, rising oil prices and the risk of losing MSCI emerging-market status drive foreign outflows.
- Analysts say Bank Indonesia needs more aggressive measures, including further rate hikes, to sustainably lift the rupiah.
- Bank Indonesia kept its key rate at 5.75%, favoring currency intervention and hedging incentives over monetary tightening that could weigh on the economy.
Quotes
“necessary adjustments”