Bank Indonesia Seen Stepping Up Tightening Pace After 'Game Changer' Fuel Hike

Sumber: Reuters | Editor: Anastasia Lilin Yuliantina

KONTAN.CO.ID - JAKARTA. Indonesia's central bank is expected to step up the pace of interest rate increases after the government's weekend announcement of a substantial fuel price hike. Economists say.

Bank Indonesia (BI) raised borrowing costs by 25 basis points last month having held the benchmark rate at a record low of 3,50% until then, as a high subsidy budget had kept a lid on the inflation rate even when global policymakers have been hiking rates at a furious pace over the past several months.