Reporting from Reuters and Channel News Asia says Bank Indonesia (BI) increased interest rates by more than expected on Thursday as it sought to keep a lid on inflation after the government raised fuel prices earlier this month.
Bank Indonesia (BI) raised the 7-day reverse repurchase rate by 25 basis points to 4.25-percent, as widely expected. Out of 30-economists polled by Reuters, 27-had expected such a move, while the remaining three had bet on a bigger 50-bp rate hike.
The bank also hiked the overnight deposit facility and lending facility rates by the same amount to 3.50-percent and 5.00-percent, respectively.
Sources: Channel News Asia, Reuters