SBI rate raised to 7.9 percent

SBI rate raised to 7.9 percent

JAKARTA: Bank Indonesia (BI) raised on Wednesday its benchmark
one-month SBI interest rate to 7.9 percent, from 7.87 percent
last week, absorbing a total of Rp 36.9 trillion (some US$3.8
billion) from the market during the day's auction of the notes.

The three-month SBI interest rate still stands at 7.81
percent, but is expected to be raised as well in its auction next
month. The central bank has been raising the SBI rates to mop up
excess market liquidity and stem the country's inflation, which,
as of April still stands at an on-year level of 8.12 percent.

BI also reported that the country's foreign currency reserve
had decreased by $759.7 million to $35.1 billion during the
second week of May, on the back of increased foreign debt
payments. -- JP