Indonesia's central bank on Friday decided to maintain benchmark interest rates unchanged at 6.5% as expected.
However, Bank Indonesia ordered lenders to set aside more cash in reserves in order to curb lending. Commercial lenders will be required to keep 8% of their deposit as primary reserves, up from the previous requirement of 5%.
The bank also set a loan-to-deposit ratio of 78-100%.
Consumer price inflation in South East Asia's largest economy jumped 6.4% in August, a 16-month high, and above the bank's 4-6% target range.
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