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Indonesia raises key interest rate to 5.5%, highest in over 3 years

Central bank remains hawkish but shows confidence it can ease inflation

Bank Indonesia has raised its benchmark interest rate for a fifth consecutive month.   © Reuters

JAKARTA -- Indonesia's central bank raised its benchmark interest rate on Thursday for the fifth consecutive month to its highest level since August 2019, as it toughens its fight against inflation.

Bank Indonesia, the country's central bank, raised its seven-day reverse repurchase rate by 25 basis points to 5.5%, within market expectations. Before the policy announcement, 27 of 29 economists polled by Reuters forecast a rise of 25 basis points, while the rest expected an increase of 50 basis points.

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