SBI rate raised to 8.18 percent

JAKARTA: Bank Indonesia raised on Wednesday its benchmark one- month SBI interest rate 12 basis points to 8.18 percent, from 8.06 percent last week, absorbing Rp 11.25 trillion (some US$1.18 billion) from the market during the day's auction of the notes.

The three-month SBI rate still stands at 8.05 percent, from 7.81 percent in May, but is expected to be raised during its auction next month.

The central bank has been raising the rates of its promissory notes to mop up excess market liquidity and stem inflation. The SBI rate hike on Wednesday also helped nudge the rupiah up to Rp 9,650 per dollar, from Rp 9,665 on Tuesday. -- JP