JAKARTA, Sept 12 (Reuters) - Bank Indonesia raised its benchmark reference rate by 25 basis points to 7.25 percent on Thursday, confounding expectations it would leave rates unchanged.
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 meeting.
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