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Indonesia hikes key interest rate to 4.75%, highest in over 2 years

Central bank keeps hawkish stance as inflation leaps to near 7-year high

Indonesia's surging inflation in September forced the country's central bank to continue tightening monetary policy.   © Reuters

JAKARTA -- Indonesia's central bank raised its benchmark interest rate on Thursday for a third consecutive month as it intensifies the fight against inflation, bringing the rate to its highest since February 2020.

Bank Indonesia hiked its seven-day reverse repurchase rate by 50 basis points to 4.75, as expected by many analysts. According to Reuters, 17 of 30 economists had forecast a 50 basis point hike, while the rest expected 25 basis points.

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