Indonesia raises key interest rate to 6% in surprise move

Central bank bends under rupiah pressure, keeps eye on stabilizing currency

20230523 Indonesia rupiah bank note

Indonesian rupiah bank notes at a money changer in Jakarta. © Reuters

ERWIDA MAULIA and ISMI DAMAYANTI, Nikkei staff writers

JAKARTA -- Indonesia's central bank defied expectations on Thursday by raising its benchmark interest rate by 25 basis points to 6% after keeping it unchanged for eight consecutive meetings.

Economists in a recent Reuters poll had forecast the central bank would keep its seven-day reverse repo rate unchanged at 5.75%.

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