Indonesia’s central bank raised its key interest rate on Thursday by 25 basis points, in line with most expectations although analysts say it may be the final increase this year as inflation has probably peaked.

Ten of 16 analysts polled by Reuters had expected the central bank, Bank Indonesia (BI), to raise its overnight policy rate by 25 basis points to 9.25 percent. Six predicted no change.

August consumer prices rose 11.85 percent over a year earlier, a modest easing from July’s annual pace of 11.9 percent, which was the highest level in almost two years.

However, the data marked the first fall in annual inflation in seven months, underlining a view that inflationary pressures, led by the soaring cost of raw materials and food, may have peaked.

Source: http://www.afxnews.com

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