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.