Indonesia hikes interest rates for 3rd straight month

By Gokhan Ergocun

ISTANBUL (AA) – Indonesia on Thursday increased its benchmark interest rate by 50 basis points, its third consecutive hike.

Bank Indonesia raised the seven-day reverse repo rate to 4.75%, the deposit facility interest rate by 50 basis points to 4%, and the lending facility interest rate by 50 basis points to 5.5%.

It also raised the rate in July and August by 0.25% and 0.5%, respectively.

The hikes are part of the central bank’s efforts to bring down inflation to its target of 3%.

Indonesia’s annual inflation rate stood at 5.95% in September and 4.69% in August.​​​​​​​