Indonesia central bank raises key policy rate by 25 bps

JAKARTA  – Indonesia’s central bank raised its key policy rate on Thursday, its fifth rate hike since August and widely expected by markets, as it aims to bring inflation back within target next year.

Bank Indonesia (BI) hiked the benchmark 7-day reverse repurchase rate by 25 basis points (bps) to 5.5 percent, as expected by the majority of economists polled by Reuters.

It also raised its deposit facility and lending facility rates by the same amount to 4.75 percent and 6.25 percent respectively.