Economists at CIMB Bank noted in a report that if external and inflationary risks put renewed pressure on the Indonesian rupiah, Bank Indonesia may raise interest rates by 25 basis points in the fourth quarter. They stated that a narrowing current account deficit could support the rupiah in the second half of the year, but external factors—including the Federal Reserve’s rate path, a stronger US dollar, and oil prices—remain key influences on the rupiah's exchange rate. They believe domestic in

CIMB Bank economists pointed out in a report that if external risks and inflation risks again put pressure on the Indonesian rupiah, Bank Indonesia may raise interest rates by 25 basis points in the fourth quarter. They stated that the narrowing current account deficit may support the rupiah in the second half of the year, but external factors—including the Federal Reserve’s interest rate path, a stronger US dollar, and oil prices—may still be key influences on the rupiah exchange rate. They believe that domestic inflation risks in Indonesia are biased upwards, affected by potential food shortages due to the El Niño phenomenon and energy price volatility in the Middle East. Given that economic growth is expected to slow in the second half of the year, CIMB Bank expects Bank Indonesia to remain patient while closely monitoring global interest rates and the movement of the rupiah.