As expected, central bank (Bank Indonesia/BI) decided on Thursday (September 22) to raise its policy rate by 50 bps to 4.25%, the second consecutive rate increase this year, as policymakers try to lower inflation expectations and ensure core inflation returns to the target of 3.0±1%  in the second half (H2) of 2023, as well as supporting the rupiah. BI also raised the overnight deposit facility and lending facility rates by the same amount to 3.50% and 5.00%, respectively.

To subscribe please click here