Indonesia c.bank raises rates for 2nd straight month


Bank Indonesia’s logo is seen at its headquarters in Jakarta. — Reuters

JAKARTA: Indonesia's central bank increased interest rates by more than expected on Thursday as it sought to control inflation after the government raised fuel prices earlier this month.

Bank Indonesia (BI) raised the 7-day reverse repurchase rate by 50 basis points to 4.25%. Out of 30 economists polled by Reuters, 27 had expected a 25 basis point move, while the remaining three had bet on a bigger 50 basis point rate hike.

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