Indonesia hikes interest rates by 50 basis points

Indonesia hikes interest rates by 50 basis points

A security guard stands near a gate outside Bank Indonesia headquarters in Jakarta, Indonesia May 19, 2016. — Reuters pic

Thursday, 22 Sep 2022 6:03 PM MYT

ISTANBUL, Sept 22 — Indonesia’s central bank increased its benchmark interest rate by 50 basis points today, reported Anadolu.

Bank Indonesia raised the seven-day reverse repo rate to 4.25 per cent, the deposit facility interest rate by 50 basis points to 3.5 per cent, and the lending facility interest rate by 50 basis points to 5 per cent.

The decision is part of efforts to bring down inflation to 3 per cent by the second half of next year, as well as strengthen the Indonesian rupiah, the bank said.

Indonesia’s annual inflation rate was 4.69 per cent in September and 4.94 per cent in August. — Bernama