- BI delivered a surprise 25bps rate hike and new FX incentives, reinforcing its commitment to Rupiah stability.
- Further tightening remains possible amid rising inflation risks and a higher-for-longer Fed outlook.
- Domestic demand is softening, but current indicators still point to a gradual soft landing.
HIGHLIGHTS
- The Next Phase of Rupiah Defense
- Soft Landing Still Intact
This Week Key Focus
- China Retail Sales – May 2026 (Tuesday)
- Japan Interest Rate Decision – June 2026 (Tuesday)
- Japan Trade Balance – May 2026 (Wednesday)
- United States Retail Sales – May 2026 (Wednesday)
- FOMC Interest Rate Decision – June 2026 (Thursday)
- Indonesia Interest Rate Decision – June 2026 (Thursday)
- Indonesia Loan Growth – May 2026 (Thursday)
- Japan Inflation Rate – May 2026 (Friday)
Last week Key Events
GLOBAL UPDATES
- China’s CPI inflation held steady at 1.2% YoY in May 2026
- US headline inflation accelerated to 4.2% YoY in May 2026
- The ECB raised its key policy rate by 25bps to 2.25% at its June 2026 meeting
DOMESTIC UPDATES
- Indonesia’s Consumer Confidence Index (CCI) fell to 120.9 in May 2026
- Indonesia’s retail sales contracted 3.7% YoY in April 2026
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