Central Banks
Indonesia Raises Key Rate by Half-Point Again to Aid Rupiah
- Seven-day reverse repurchase rate increased to 4.75%
- Governor sees core inflation returning to goal in 1H 2023
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Indonesia’s central bank increased borrowing costs by 50 basis points for a second straight meeting, as authorities sought to front-load their actions to arrest a slump in the rupiah and check inflation.
Bank Indonesia raised its seven-day reverse repurchase rate to 4.75% on Thursday, as seen by 19 of 31 economists in a Bloomberg survey. Eleven predicted a quarter-point increment, while one saw a 75-basis point hike.