JAKARTA: Indonesia’s central bank raised its benchmark reference rate to 7.50% yesterday, in a surprise move to help shrink a worryingly large deficit in the current account. The move will help bolster the fragile rupiah, Asia’s worst performing currency this year.
The decision, which comes as inflation has started to stabilise, follows comments a day earlier from senior deputy governor Mirza Adityaswara saying the central bank would keep a “tight bias” on its rate policy because of high imports by South-East Asia’s biggest economy. – Reuters