Bank Indonesia Likely to Hold Rate at 5.75%, WSJ Poll Shows
A Wall Street Journal poll shows most economists expect Bank Indonesia to keep its 5.75% rate on Wednesday, while the rupiah stays under pressure.
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what happened
Bank Indonesia is expected to keep its seven-day reverse repo rate at 5.75% on Wednesday, according to a poll of nine economists by The Wall Street Journal, as reported by Market Talk. Seven of them expect no change, while two forecast a 25 basis point increase to 6.0%.
HSBC economists note that economic growth remains resilient and inflation sits within the central bank's target range. However, the rupiah has weakened as the U.S. dollar strengthened broadly. Narrowing yield differentials could also weigh on foreign portfolio inflows.
HSBC says Bank Indonesia may first use other tools, such as rupiah securities issued by the central bank, to support the currency. A 25 bp hike is expected later this year, but not at the October meeting.
why it matters
For markets, the key question is whether the central bank can defend the rupiah without tightening policy. If rates stay unchanged, currency pressure may persist and expectations of a further hike could be pushed back.
market impact
Rupiah and Indonesian bonds: weaker currency and capital outflow risk put pressure on IDR
tags
instruments
sources
- Indonesia's Central Bank Likely to Stand Pat, WSJ Poll Shows — Market Talk, 20 October 2026 at 05:08 UTC
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