SBI rate raised to 7.95 percent

JAKARTA: Bank Indonesia (BI) nudged up on Wednesday its benchmark one-month SBI interest rate five basis points to 7.95 percent, from 7.9 percent last week, absorbing Rp 3 trillion (some US$315 million) from the market during the day's auction of the notes.

The three-month SBI rate still stands at 7.81 percent, but will likely be raised as well in its auction next month.

The central bank has been raising the rates of its promissory notes to mop up excess market liquidity and stem the country's inflation, which as of April stood at an on-year level of 8.12 percent. The government is targeting a 7 percent inflation rate and an 8 percent three-month SBI rate for this year. --JP