{
    "success": true,
    "data": {
        "id": 1752185,
        "msgid": "a-rare-history-bi-has-raised-rates-by-50-basis-points-only-five-times-when-will-it-happen-1779545667",
        "date": "2026-05-20 16:25:32",
        "title": "A Rare History: BI Has Raised Rates by 50 Basis Points Only Five Times \u2014 When Will It Happen?",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Bank Indonesia surprised markets by lifting the BI Rate by 50 basis points to 5.25%, ending an eight\u2011month hold and citing exchange-rate stability amid geopolitical tensions and an inflation target of 2.5% \u00b1 1 percentage point for 2026\u201327. The move places BI among a small group of 50bp hikes, with prior instances in 2013, 2018, 2022, and the mid\u20112000s, and comes amid ongoing global rate dynamics.",
        "content": "<p>Jakarta, CNBC Indonesia \u2014 Bank Indonesia (BI) stunned markets by\nraising the policy rate, the BI Rate, by 50 basis points to 5.25%. The\n50 bps increase is unusual. At today\u2019s Board of Governors Meeting (RDG),\non Wednesday, 20 May 2026, BI also lifted the Deposit Facility rate by\n50 bps to 4.25% and the Lending Facility rate to 6.25%, ending the BI\nRate at 4.75% after eight months of hold. Governor Perry Warjiyo said\nthe move was taken to strengthen rupiah stability amid worsening global\nconditions due to the Middle East conflict and to safeguard the\ninflation target for 2026\u20132027 within the 2.5% \u00b1 1 percentage point\nband. The rate hike aligns with CNBC Indonesia\u2019s poll results. Of 15\nparticipating institutions, nine expected BI Rate to rise by 25 basis\npoints to 5.00%, but the 50 bps increase diverged from the poll.\nHosianna Situmorang, an economist at Danamon Bank, said the rate rise\nwas indeed higher than market expectations. \u201cThis step reiterates BI\u2019s\nfocus on stabilising the exchange rate amid US\u2013Iran tensions, energy\nprice pressures, and capital outflows from emerging markets,\u201d he told\nCNBC Indonesia. He added that the rate rise is an attempt for BI to stay\na step ahead, particularly since a 5.7% depreciation since the start of\nthe year could spur imported inflation. When Could BI Raise Rates by 50\nbps? The 50 bp move is rare in BI\u2019s history. Since the policy rate was\nintroduced in 2005, BI has done it only in four periods. A 50 bps hike\nis usually an anticipation by BI to pre-empt a surge in inflation from\nfuel-price policies. There have been two periods when such an increase\noccurred outside the inflation-surge pre-emption, namely in 2018 and\nthis year. 1. September\u2013November 2025: BI raised the policy rate by 50\nbps in September, October and November 2022. This aggressive step\nfollowed a government fuel-price increase of about 31% and higher U.S.\nrate expectations. At that time, BI was seen as late to tighten. BI\nfirst raised rates in August 2022 by 25 bps, while the U.S. Federal\nReserve had already moved in March. Several other central banks had\nalready begun tightening earlier than the Fed. The Bank of Korea (BoK),\nfor example, had raised rates since August 2021, and by October had\nlifted them eight times by a total of 250 basis points to 3%. 2. June\n2018: BI lifted rates by 50 bps in June 2018 as a front-loading\npre-emptive move to safeguard domestic financial-market competitiveness\namid a global tightening cycle. 3. July and August 2013: BI aggressively\nlifted rates in July and August 2013 after the government raised fuel\nprices by around 30% in June. 4. July\u2013December 2005: BI aggressively\nraised rates from July to December 2005, from 8.5% to 12.75% (a rise of\n425 bps). Throughout 2005, BI pursued an aggressive tightening path with\nrate increases of 25 bps in August, 125 bps in September, 100 bps in\nOctober, 125 bps in November, and 50 bps in December. It is worth noting\nthat July 2005 marked BI\u2019s introduction of the policy rate. 5. May 2006:\nBI lifted rates as the rupiah languished through May, briefly hitting a\nhistoric low near Rp 17,700 per US dollar.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/a-rare-history-bi-has-raised-rates-by-50-basis-points-only-five-times-when-will-it-happen-1779545667",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}