Indonesia’s central bank raises interest rates by 0.25% in line with other central banks

Indonesia’s central bank decided to raise interest rates at the meeting. It was the first rate hike since 2018 and contrary to what most analysts had expected the central bank to maintain.

The Indonesian central bank raised the interest rate for the repurchase of bonds by 0.25% to 3.75% for seven days.

Indonesia’s central bank has begun to adjust its monetary policy in line with other global central banks. This also applies to the U.S. Federal Reserve (Fed) after inflation rose sharply.

In this meeting, the Indonesian central bank expects inflationary pressures to continue. The consumer price index (CPI) is expected to rise above the central bank’s target of 2% to 4% both this year and next.

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