- Bank Indonesia kept the BI Rate at 5.75%, supported by improving domestic financial market conditions following S&P’s rating announcement and the global rotation into emerging markets.
- BI adopted a two-pronged policy approach by increasing FX Swap and DNDF incentives to support Rupiah stability while revising the KLM framework to strengthen credit growth.
- Amid persistent global uncertainty and El Niño risks, we continue to see room for one to two additional BI Rate hikes by year-end.
