# Bank Indonesia Raises Key Interest Rate by 50 bps to 5.25% | Indonesia Investments

> Bank Indonesia raised its seven-day reverse repo rate by 50 basis points to 5.25%, a bigger move than the 25 bps most economists expected. The central bank is defending the rupiah, which had weakened beyond 14,400 per dollar, after the Fed hike and trade tensions.

- Date: 2018-06-29 · published 2018-06-29T12:00:00.000Z
- Category: macro · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/64834-bank-indonesia-raises-key-interest-rate-by-50-bps-to-5-25-indonesia-investments
- Commodities: [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md)

## Why it matters

Tighter Indonesian rates aim to support the rupiah, which eases import costs for feed ingredients, but higher borrowing costs can slow poultry and livestock expansion over time.

## Read by commodity

- USDIDR: neutral

## Sources

- indonesia-investments.com: https://www.indonesia-investments.com/news/todays-headlines/bank-indonesia-raises-key-interest-rate-by-50-bps-to-5.25/item8865

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