Indonesia and the Philippines raised interest rates on Thursday, in some of the most aggressive policy tightening in Asia since the war in the Middle East began as the two countries look to shore up slumping currencies and curb inflation.
Bank Indonesia raised its benchmark rate by 0.25 percentage points to 5.75 per cent, following an unexpected increase by the same amount last week. That brought the total rise in interest rates in south-east Asia’s largest economy to 1 percentage point in just four weeks.
The Bangko Sentral ng Pilipinas also raised rates by 0.25 percentage points, to 4.75 per cent, following a similar increase in April. The bank cited strong inflationary pressures from higher oil and fertiliser prices, which it said were driving up food prices.