# Bank Indonesia surprises with rate hike to steady IDR | snaps | ING THINK

> Bank Indonesia surprised markets by raising its policy rate to 6.0% on October 19 to shore up the rupiah, which had fallen 1.77% for the month. The central bank said it made a preemptive move to keep inflation manageable amid rising global headwinds. It expects capital outflows to persist through the year.

- Date: 2023-10-19 · published 2023-10-19T12:00:00.000Z
- Category: macro · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/33959-bank-indonesia-surprises-with-rate-hike-to-steady-idr-snaps-ing-think
- Commodities: [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md)

## Why it matters

Higher Indonesian rates tighten financing for the feed and livestock sectors and can cut domestic demand for feed grains and meal. The currency pressure also raises the local-currency cost of imported feed ingredients.

## Read by commodity

- USDIDR: bullish ▲

## Sources

- think.ing.com: https://think.ing.com/snaps/indonesia-bank-indonesia-surprises-with-rate-hike-to-steady-idr/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.