
Bank Indonesia said it had increased intervention in spot, domestic non-deliverable forward, and offshore markets to stabilize the rupiah amid escalating external pressures. The central bank cited Middle East geopolitical tensions disrupting energy production, distribution, and shipping, and said it had lowered its global growth forecast to 3% while raising its global inflation forecast to 4.2%.
Higher energy and commodity costs can worsen inflation and pressure Indonesia’s external balance, weighing on the rupiah. BI intervention may limit the currency’s decline and temper import-cost inflation.
Not enough comparable past events yet for a historical read.
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