Indonesia hikes interest rates by 50 basis points

By Gokhan Ergocun

ISTANBUL (AA) – Indonesia’s central bank increased its benchmark interest rate by 50 basis points on Thursday.

Bank Indonesia raised the seven-day reverse repo rate to 4.25%, the deposit facility interest rate by 50 basis points to 3.5%, and the lending facility interest rate by 50 basis points to 5%.

The decision is part of efforts to bring down inflation to 3% by the second half of next year, as well as strengthen the Indonesian rupiah, the bank said.

Indonesia’s annual inflation rate was 4.69% in September and 4.94% in August.​​​​​​​