Key facts
- DBS Bank economist Radhika Rao sees potential for 50 basis points of further rate hikes in Indonesia in H2 2026.
- These hikes are conditional on continued rupiah slippage and prolonged geopolitical tensions.
- Rao shared these views in an interview on "Insight with Haslinda Amin."
Radhika Rao, Executive Director and Senior Economist at DBS Bank, has indicated that there is scope for Indonesia to implement an additional 50 basis points in interest rate hikes during the second half of 2026. This forecast is predicated on the assumption of continued depreciation of the Indonesian rupiah and the persistence of geopolitical tensions. Rao shared these insights during an interview on "Insight with Haslinda Amin."