Bank Indonesia faces pressure to raise rates at Wednesday's meeting after MSCI said it may move Indonesia to standalone status from emerging-market status, triggering a selloff in stocks and the rupiah. Citibank now expects a 50 basis-point hike to 6.25%, while Capital Economics and Permata Bank expect 25 basis points to 6%, from the current 5.75%. The rupiah weakened to 18,030 per dollar, near its June record low and down about 8% this year. Permata's chief economist Josua Pardede estimates foreign investors have net sold about $5 billion of Indonesian stocks this year, and a downgrade could bring $3 billion to $5 billion in passive outflows plus $15 billion in actively managed money under review. He warns that lasting doubts about market integrity could raise Indonesia's cost of capital.
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interest ratescentral bankIndonesiacapital flows
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Related tickers and likely impact
VNINDEX
• NeutralRelevance: low
| Market | Vietnam stocks |
|---|---|
| Close on 10/19/2026 | 1,689.84 |
| Change that session | -0.94% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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