Bank Indonesia's 50 basis point hike to 5.25% couldn't arrest the rupiah, which broke through 18,000 per dollar for the first time on record. An $18bn Q1 2026 balance-of-payments reversal shows the structural vulnerability that rate policy alone can't fix.
Global central bank policy shifts in late May included South Africa’s first rate hike in three years to 7%, as emerging markets respond to inflation pressures from fuel costs and geopolitical tensions. Source
