Bank Indonesia left the seven-day reverse repo rate at 5.75%, matching the
expectation of 15 of 29 economists in a REUTERS SURVEY; the remainder had
expected at least a 25bp hike to curb selling. The central bank raised the
overnight deposit facility rate by 25bp to 5.00% and kept the lending facility
rate at 6.50%. BI delivered a cumulative 100bp of hikes across three moves in
May–June to defend Indonesia's rupiah. Last week MSCI warned it may downgrade
the Indonesian equity market to "standalone", a move that helped trigger a
sell-off and renewed pressure on the rupiah.