Indonesia c.bank raises benchmark rate 25 bps

Indonesia c.bank raises benchmark rate 25 bps

JAKARTA, Aug 23 (Reuters) - Indonesia's central bank unexpectedly raised its policy rate for the first time since 2018 on Tuesday, stepping up monetary tightening to fight rising inflation.

Most analysts surveyed by Reuters had expected BI to stand pat, with a significant minority predicting a rate hike.

Bank Indonesia (BI) hiked the seven-day reverse repurchase IDCBRR=ECI rate by 25 basis points (bps) to 3.75%, as predicted by 11 of 27 economists polled by Reuters. The last time BI raised its key rate was in November, 2018.

The overnight deposit IDCBID=ECI and lending facility rates IDCBIL=ECI were also raised by the same amount, to 3.00% and 4.50%, respectively.
Reporting by Gayatri Suroyo, Fransiska Nangoy and Stefanno Sulaiman; Editing by Kanupriya Kapoor and Jacqueline Wong