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Bank Indonesia Raises Rates by 50bps to 5.25%, As Expected

INDONESIA CENTRAL BANK
  • Bank Indonesia raise the benchmark policy rate by 50bps to 5.25%, as expected. The lending facility rate and deposit facility rate are also raised by 50bps to 6.00% and 4.50% respectively.
  • The bank flag that the decision is part of a front-loading of policy, intended to be pre-emptive and forward-looking measure to bring down inflation expectations.
  • The Bank see the decision as guiding core inflation back within target in the first half of next year, and the rate rise will also step up support for the IDR amid the strong USD backdrop.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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