JAKARTA, Sept 12 Bank Indonesia raised its
benchmark reference rate by 25 basis points to 7.25 percent on
Thursday, confounding expectations it would leave rates
The central bank raised the overnight deposit facility rate,
or FASBI, by 25 basis points to 5.50 percent, to help prop up
the ailing rupiah.
Eight out of 11 analysts surveyed by Reuters expected Bank
Indonesia to hold the benchmark reference rate steady at
7 percent, to give the market time to adjust after having just
raised it by 50 basis points (bps) at an Aug. 29 interim
Southeast Asia's biggest economy has been hit by fund
outflows in recent months on concerns over its worsening current
account deficit and soaring inflation.
Indonesia's current-account deficit hit 4.4 percent of gross
domestic product or the equivalent of $9.8 billion in the second
quarter of the year.
Annual inflation quickened to 8.79 percent in August from
8.61 percent, bolstered by rising food and gold prices, as well
as imported inflation from the rupiah.
The rupiah, Asia's worst performing currency, is down more
than 16 percent against the dollar since the start of the year.
Announcement date Rate (percent)
For more historical data, please see
(Reporting by Nilufar Rizki and Adriana Nina Kusuma; Writing by
Rieka Rahadiana; Editing by Jacqueline Wong)