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Bank Indonesia Slows Rate Hikes As Inflation Remains High

Indonesia's central bank decided to raise its key interest rate for the fifth policy session at its December meeting, though at a slower pace than in the previous months, as inflation came off slightly from highs due to a modest easing in energy prices and the pace of economic growth is forecast to slow next year in the backdrop of a global slowdown.

The Board of Governors, headed by Perry Warjiyo, hiked the BI 7-day reverse repo rate to 5.50 percent from 5.25 percent following its two-day rate-setting session, the Bank Indonesia said on Thursday.

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by RTTNews Staff Writer

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