Bank Indonesia raises interest rates for first time in three years
Governor says decision is “pre-emptive” after inflation reaches a seven-year high
Indonesia’s central bank raised rates today (August 23) for the first time since 2018, after inflation reached its highest level in nearly seven years.
Bank Indonesia’s six-person board of governors raised the seven-day reverse repo rate by 25 basis points to 3.75%. It also hiked the deposit and lending rates by 25bp to 3% and 4.5% respectively. The last time the central bank raised policy rates was in November 2018.
Most analysts polled by Bloomberg had predicted Bank Indonesia to keep its
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