Indonesia raises interest rates amid inflation concerns

By Gokhan Ergocun

ISTANBUL (AA) – Indonesia’s central bank increased its benchmark interest rate by 25 basis points on Tuesday.

Bank Indonesia raised the seven-day reverse repo rate to 3.75%, the deposit facility interest rate by 25 basis points to 3%, and the lending facility interest rate by 25 basis points to 4.5%.

The decision is a “pre-emptive and forward-looking step”​​​​​​​ step to mitigate the risk of rising inflation due to the increase in energy and food prices, the bank said in a statement.

The bank said it will continue to strengthen policies to maintain stability amid high uncertainty in global financial markets.​​​​​​​