Indonesia Raises Its Reverse Repo Rate to 5.25% From 4.75%
- Most economists in Bloomberg survey forecast a 25 bps hike
- Currency has been under pressure amid emerging-market selloff
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Indonesia’s central bank stepped up its policy action with a bigger-than-forecast interest rate hike -- the third increase in six weeks -- to halt a deepening slide in the currency.
The seven-day reverse repurchase rate was raised by 50 basis points to 5.25 percent on Friday, surprising all of the 31 economists surveyed by Bloomberg, most of whom had predicted a 25 basis-points hike.