BANK INDONESIA DELIVERS UNEXPECTED ‘PRE-EMPTIVE’ RATE CUT

JAKARTA - In contrast to policy easing by other central banks in the past month (Australia, Korea, Thailand, and India), Bank Indonesia has raised its benchmark interest rate by 25 bps to 6.0%. The move follows a surprise 25bp hike in the overnight deposit rate (FASBI) announced last Tuesday, and marks the first rate move in more than a year, since BI cut rates to a record low in February 2012.