JAKARTA: Indonesia’s central bank increased interest rates by more than expected on Thursday as it sought to keep a lid on inflation after the government raised fuel prices earlier this month.

Bank Indonesia (BI) raised the 7-day reverse repurchase rate by 50 basis points to 4.25%. Out of 30 economists polled by Reuters, 27 had expected a 25 basis point move, while the remaining three had bet on a bigger 50 basis point rate hike.

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The bank also hiked the overnight deposit facility and lending facility rates by the same amount to 3.50% and 5.00%, respectively.