Bank of Indonesia raises interest rate by 0.5% to 5.25

The Bank of Indonesia (BI) raised interest rates for the third consecutive month by 0.50% to curb inflation and support the rupiah.

The central bank raised its 7-day reverse repo rate by 0.50% to 5.25% and also increased other policy rates by the same rate.

With the latest move, the BI increased interest rates by a total of 1.75% since August. This corresponds to the last tight financial cycle in 2018.

The BI governor said the BI will increase its response to monetary policy to lower inflation.

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