Institution: Pressure on Indonesian rupiah may prompt Bank Indonesia to raise interest rates.

Economists Lim Yee Ping and Michelle Chia from Lianchang International stated in a report that the Indonesian rupiah has fallen to record lows against the US dollar, increasing pressure on the Indonesian central bank to tighten its policies. The central bank has strengthened its defense of the rupiah by issuing Indonesian rupiah securities with higher yields. However, they believe that these measures alone may not be enough to curb continued currency volatility, thus increasing the possibility of tightening monetary policy. This supports Lianchang International's expectation of a 25 basis point rate hike in May, and the first quarter GDP growth data to be released on Tuesday may show a robust performance, providing room for the Indonesian central bank to reduce policy support.