Indonesia Holds Main Rate and Hikes Deposit Rate
Bank Indonesia kept its benchmark rate at 5.75 percent while raising the deposit facility rate by 25 basis points. The move aims to stabilize markets as the rupiah nears historic lows.
Indonesia's central bank held its benchmark interest rate at 5.75% during Wednesday morning's policy review, countering a record two-day stock market rout. The decision matched expectations from 15 of 29 economists polled by Reuters, while the remaining analysts had projected a 25 bps hike. Officials moved to defend the falling rupiah by raising the overnight deposit facility rate 25 bps to 5.00%.
