UOB's stock fell sharply by 3.17% during intraday trading on Friday, marking a significant decline for the Singapore-based banking group.

The drop followed a report from UOB's own economist in Indonesia, who predicted that Bank Indonesia would raise its benchmark interest rate three times in the second half of 2026. The economist cited the need to stabilize the Indonesian rupiah by attracting foreign capital through higher yields, with projections suggesting the rate could increase from 5.75% to 6.5%.

Market participants likely reacted negatively to this outlook, as higher interest rates could increase borrowing costs for banks and potentially slow loan growth, impacting profitability in the banking sector where UOB has significant operations.