Indonesian central bank hikes key rate
Friday, 6 June 2008
JAKARTA, June 5 (AFP): Indonesia's central bank (BI) raised its key policy rate by 25 basis points to 8.50 per cent today to counter rising inflation from surging commodities prices.
The bank assured markets, which had been expecting a larger rise, that inflation would likely return to single digits next year.
"At the end of 2008, the year-on-year inflation rate is estimated between 11.5 to 12.5 per cent," Bank Indonesia deputy governor Hartadi Sarwono was quoted as saying by Detikcom online news service.
The bank assured markets, which had been expecting a larger rise, that inflation would likely return to single digits next year.
"At the end of 2008, the year-on-year inflation rate is estimated between 11.5 to 12.5 per cent," Bank Indonesia deputy governor Hartadi Sarwono was quoted as saying by Detikcom online news service.