Indonesia's central bank on Thursday unexpectedly raised the benchmark BI rate for the first time since early 2011 as a "pre-emptive" step to contain rising inflation expectations and to maintain macroeconomic and financial system stability.
The BI rate was lifted by 25 basis points to 6 percent from a record-low of 5.75 percent. The rate was on hold since a quarter-point reduction in February 2012.
Bank Indonesia, on Tuesday, raised the interest rate on deposit facility by 25 basis points to 4.25 percent to counter a slide in rupiah. The bank had also said it will maintain sufficient liquidity in the market.
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