Bank Indonesia raises interest rates for first time in three years

Bank Indonesia
Bank Indonesia
Christopher Jeffery

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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