Bank Indonesia surprises with new rate increase

~~JAKARTA - After pausing last month, Bank Indonesia (BI) has resumed its tightening campaign with a 25 basis points rate increase in order to contain the current account deficit and support the currency against further downside pressures. Under Governor Agus Martowardojo, who took office in May, BI has now lifted rates by 1.75% since June, to 7.50%, following an administered fuel price increase and an episode of currency volatility and capital outflows from earlier expectations of QE tapering.