Indonesia

Indonesian Central Bank Raises Interest Rate to Contain Inflation

Believe it will help maintain financial stability

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Indonesia's central bank on Thursday unexpectedly raised its benchmark interest rate for the first time since 2011 in a bid to contain rising inflation expectations and to maintain macroeconomic and financial stability.

The BI rate was lifted by 25 basis points to 6 percent from a record-low of 5.75 percent. The rate was on hold since a quarter-point reduction in February 2012. The BI rate was last raised in early 2011.

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