Key facts
- Indonesia's central bank implemented a surprise interest rate hike.
- The decision was made to counter a market selloff and currency depreciation.
- The move is intended to stop foreign capital outflows.
- Policy uncertainty under President Prabowo Subianto is cited as a factor.
Indonesia's central bank delivered a surprise interest rate hike in an aggressive move to reverse a market selloff and support the nation's currency. The decision by the central bank aims to halt foreign outflows that have been triggered by policy uncertainty surrounding President Prabowo Subianto.
The aggressive action underscores the central bank's commitment to maintaining financial stability amidst evolving political and economic conditions.