Indonesian central bank raises benchmark interest rate to 5.5%

The headquarters of Bank Indonesia(Photo: Reuters)

Jakarta (VNA) - Indonesia's central bank has announced an increase in its benchmark interest rate by 25 basis points to 5.5% to maintain stability and boost economic recovery.

It has raised its benchmark interest rate by a total of 200 bps since August this year.

Governor of Bank Indonesia (BI) Perry Warjiyo said at a virtual press conference that the decision was taken as a pre-emptive and forward-looking measure to lower inflation expectation.

BI will continue to adjust monetary policy next year to ensure economic stability in the context of the expected global economic slowdown in 2023, he added.

Warjiyo said Indonesia's economy still remains stable thanks to strong domestic demand and exports, while several economic sectors including manufacturing as well as wholesale and retail trade have also recorded strong growth.

The central bank estimates that domestic economic growth will range from 4.5 - 5.3% this year and next year, supported by maintained domestic demand and strong export performance./.