Institution: Bank Indonesia is expected to keep interest rates unchanged until the end of 2026

They pointed out that a relatively hawkish Federal Reserve has raised the threshold for policy easing, and although the Indonesian rupiah has rebounded from recent lows, it remains volatile. CIMB International added that while easing tensions in the Middle East and falling energy prices may support Indonesia’s inflation outlook and its external balance, the 2027 budget will be a key test for fiscal risks and the stability of the rupiah, which may prompt the Indonesian central bank to remain cautious.