Indonesia / Higher interest rates

Indonesia / Higher interest rates in Asia: Indonesia's central bank announced a surprise hike in its benchmark rate by 25 bps 6.00% on Thursday, in the face of growing pressure on the rupiah and concern over delays by the govt in cutting costly fuel subsidies. The decision, the first to be presided over by new governor Agus Martowardojo, came after Bank Indonesia (BI) on Tuesday night unexpectedly hiked the overnight deposit facility rate, or FASBI, in a bid to help stabilise the weakening rupiah IDR. On Wednesday, Deputy Governor Perry Warjiyo said BI would also supply large amount of dollars to the market and was committed to buy govt bonds in the secondary market.