Indonesia central bank raises benchmark rate 25 bps

Indonesia central bank raises benchmark rate 25 bps
FILE PHOTO: Logo of Indonesia’s central bank, Bank Indonesia, as seen in Jakarta, Indonesia January 19, 2017. REUTERS/Fatima El-Kareem

JAKARTA : Indonesia’s central bank unexpectedly raised its policy rate for the first time since 2018 on Tuesday, stepping up monetary tightening to fight rising inflation.

Most analysts surveyed by Reuters had expected BI to stand pat, with a significant minority predicting a rate hike.

Bank Indonesia (BI) hiked the seven-day reverse repurchase rate by 25 basis points (bps) to 3.75 per cent, as predicted by 11 of 27 economists polled by Reuters. The last time BI raised its key rate was in November, 2018.

The overnight deposit and lending facility rates were also raised by the same amount, to 3.00 per cent and 4.50 per cent, respectively.



Source: Reuters