Bank Indonesia Begins Battle to Contain Accelerating Inflation
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Indonesia’s central bank may add to its first interest-rate increase in more than two years after falling in danger of being judged too slow to contain accelerating inflation.
The next move may come as soon as next month, according to PT Bank Danamon Indonesia. HSBC Holdings Plc expects Bank Indonesia’s benchmark reference rate to be raised by half a percentage point by April after Governor Darmin Nasution unexpectedly boosted it to 6.75 percent from 6.5 percent yesterday. The move was the first increase since October 2008.