SBI rate up to 16.76%

JAKARTA (JP): The weighted average interest rate of one-month Bank Indonesia SBI promissory notes increased to 16.76 percent at the Wednesday weekly auction, up slightly from 16.65 percent last week.

Bank Indonesia said it absorbed Rp 14.79 trillion rupiah, or 98.8 percent of incoming bids at the auction.

The central bank has been allowing its benchmark interest rate to move higher to help curb inflationary pressure and stabilize the rupiah.

Earlier in the day, Bank Indonesia deputy governor Miranda Goeltom said that the central bank would continue to maintain its tight monetary policy amid inflationary pressure.

She said that the central bank would guide its interest rate policy so as not to jeopardize the government's 3.5 percent economic growth target this year.(rei)