<div id="readability-page-1" class="page">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.</div>

EIDO

<p>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.</p>

- Bank Indonesia has increased interest rates by 50 basis points to 5.25%, its first rise in two years.  
- This decision responds to financial pressures stemming from the Iran war, rising oil prices, and the weakened rupiah.  
- The central bank highlights global volatility and risks associated with the Middle East conflict as primary factors for this rate hike.

Indonesia raises rates citing Middle East war volatility