Indonesia’s central bank raises its benchmark interest rate in an off-cycle decision to support the rupiah and keep inflation within the government’s target range. Reports say the move follows a 0.5 percentage point rate increase last month, and it is taken despite expectations that policy might remain unchanged. In a statement, the central bank frames the hike as a “pre-emptive measure” designed to maintain inflation between 1.5% and 3.5%. Multiple outlets link the decision to persistent pressure on the currency, which has lingered near record lows and has weakened significantly this year, with one report describing it as Asia’s worst-performing currency. Analysts cited by Bloomberg say further tightening could occur to reduce currency volatility if market conditions do not stabilise. The rupiah’s weakness is attributed in one report to investor concerns, including policy and spending plans under President Prabowo Subianto and an increase in fuel-subsidy related costs tied to the impact of the Iran war. Other coverage notes the rate surprise helps the currency rebound from record lows and supports broader market sentiment.