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