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Bank Indonesia lifts benchmark rate to over 3-year high of 5.75%

As Malaysia holds fast, Jakarta's central bank moves to quell inflation

Bank Indonesia, the country's central bank raised its benchmark interest rate for the sixth month in a row on Jan. 19 as it tries to put a lid on rising prices.   © Reuters

JAKARTA -- Indonesia's central bank on Thursday raised its benchmark interest rate for a sixth consecutive month as it tries to tame inflation, pushing the rate to its highest point since July 2019.

Bank Indonesia increased its seven-day reverse repurchase rate by 25 basis points, or a quarter percentage point, to 5.75%, as expected by many analysts. According to a Reuters poll, 23 of 29 economists had forecast a 25 basis point-hike, while six expected no change.

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