The exchange rate forecast for GBP to IDR indicates a cautiously optimistic outlook for the British Pound based on recent developments stemming from the Bank of England (BoE) and fiscal policies in the UK. The pound has strengthened due to signals from the BoE suggesting a more measured approach to future interest rate cuts. Despite a recent cut to 4.75%, analysts note that the central bank is becoming less aggressive, which may support GBP in the medium term.
Recent economic metrics from the UK, including expected recovery in retail sales, could provide additional support to the GBP. However, the impact of rising inflation, which increased to 2.6% in November 2025, alongside a downward revision in GDP growth forecasts, reflects a more cautious economic outlook. Analysts suggest that these factors could keep the GBP under pressure, particularly if inflation continues to rise, prompting the BoE to reconsider its rate cut trajectory.
On the other hand, the Indonesian Rupiah has faced substantial challenges, including reaching a 27-year low against the US dollar earlier in 2025 and ongoing political instability, which have contributed to market volatility. The effects of civil unrest in Jakarta and a significant decline in tax revenue have put additional stress on the IDR. Economists suggest that efforts by the Indonesian government to repatriate US dollar holdings may provide some support; however, the overall economic landscape remains fragile.
In terms of market performance, GBP to IDR is currently at 90-day highs near 22,645, reflecting a 2.2% increase above its three-month average. This indicates a stable trend within a range of 21,758 to 22,645, suggesting some underlying strength in the pound against a backdrop of pressures on the rupiah. Moving forward, market participants will likely keep a close eye on geopolitical factors and economic indicators in both the UK and Indonesia to assess potential shifts in the exchange rate.
