Indonesia Set to Hold Rate as War, Fiscal Risks Pressure Rupiah

Indonesia’s central bank is expected to keep its key interest rate unchanged as policymakers confront mounting pressure on the rupiah from war in the Middle East and investor concerns over fiscal discipline.

All 30 economists surveyed by Bloomberg predict that Bank Indonesia will hold its benchmark BI-rate at 4.75% on Tuesday, a level that the central bank has maintained since October. BI’s last four decisions were in line with market expectations, while the four before that were a surprise.