INDONESIA’S central bank defied majority expectations with a hawkish stance, raising its key interest rate on Wednesday (Apr 24) to support the battered rupiah, which has reached four-year lows on the back of a rallying US dollar.

The central bank hiked the benchmark seven-day reverse repurchase rate by 25 basis points to 6.25 per cent – its first hike this year and its eighth since the bank began a tightening cycle in 2022.

The overnight deposit facility and lending facility rates were similarly raised by 25 basis points to 5.5 per cent and 7 per cent, respectively.