Bank Indonesia Raises Key Rate After Fuel-Price Increase
This article is for subscribers only.
Indonesia’s central bank raised interest rates for the first time in a year, tightening policy in an unscheduled meeting to guard against inflation after President Joko Widodo boosted fuel prices.
Bank Indonesia Governor Agus Martowardojo and his board increased the reference rate a quarter point to 7.75 percent, the central bank said in Jakarta today. The price of subsidized gasoline was pushed up to 8,500 rupiah ($0.70) a liter from 6,500 rupiah effective today, and diesel has been raised to 7,500 rupiah a liter from 5,500 rupiah.