Today’s 25 basis point rate hike by Bank Indonesia (BI) is a direct response to yesterday’s government decision to hike subsidised fuel prices. While we wouldn’t rule out the possibility of another rate hike over the next month or so, we doubt today’s increase marks the start of a series of aggressive moves by the central bank.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services