---
title: "Indonesia raises rates citing Middle East war volatility"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287321765.md"
description: "Bank Indonesia has raised its benchmark interest rate by 50 basis points to 5.25%, marking its first increase in two years. This decision was influenced by financial pressures from the Iran war, rising oil prices, and a weakened rupiah, amid global volatility linked to the Middle East conflict."
datetime: "2026-05-22T07:11:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287321765.md)
  - [en](https://longbridge.com/en/news/287321765.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287321765.md)
---

# Indonesia raises rates citing Middle East war volatility

Bank Indonesia has raised interest rates by more than expected as the Iran war, higher oil prices and a battered rupiah increase financial pressure on Southeast Asia’s largest economy. Reuters reported that the central bank lifted its benchmark rate by 50 basis points to 5.25%, its first increase in two years, explicitly citing global volatility and risks tied to the Middle East conflict.

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