Indonesia’s central bank raised its benchmark reference rate 50 basis points to 7.0 percent on Thursday in a bid to stabilize the wilting rupiah and economy as the country battles high inflation and a stock market sell-off.
It also raised its overnight deposit facility rate, FASBI, 50 bps to 5.25 percent and its lending facility rate by 25 bps to 7.0 percent.
Bank Indonesia (BI) held rates steady at a board meeting on Aug. 15, and its next monthly meeting had not been scheduled until Sept. 12. But declines in the rupiah and local stocks began to accelerate over the last week, prompting the Thursday session.
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