Key interest rate raised
The government hiked the nation’s key interest rate to 6 percent yesterday, the first change in more than a year as it seeks to boost confidence in the rupiah and head off an expected rise in inflation. On Tuesday, Bank Indonesia announced it would hike the rate it pays lenders for overnight deposits, known as the Fasbi, by 25 basis point to 4.25 percent.
Unemployment rate eases
The unemployment rate eased to 5.5 percent last month, an unexpected fall that could see the central bank hold off on cutting interest rates next month. However, the amount of people employed rose by 1,100, the Bureau of Statistics said, compared with an expected fall of 10,000.
RBS chief to step down
Bailed-out UK lender Royal Bank of Scotland (RBS) said on Wednesday that Stephen Hester will step down as chief executive later this year — a move that creates some uncertainty as the bank prepares to return to the private sector. The board of the bank, which is 81 percent owned by the taxpayer after it was rescued by the UK government in 2008, said Hester was unable to make an open-ended commitment to lead the bank back into the private sector after having already served five years.
Firm denies bribe claims
Drug manufacturer Glaxo-SmithKline yesterday said it has investigated an accusation that its salespeople in China bribed doctors and found no evidence of wrongdoing. The company said it conducted a four-month investigation after receiving complaints from an anonymous source. The Wall Street Journal, citing company documents, reported the complaint said GlaxoSmithKline staff in China provided doctors with speaking fees, cash payments, lavish dinners and travel in return for prescribing its products.
Yahoo to release accounts
Yahoo is trying to breathe new life into inactive e-mail accounts by giving away the identifications beginning next month. The program announced on Wednesday will give Web surfers an opportunity to claim a new handle that had previously been unavailable. It also represents a last chance for Yahoo users who have not logged in for at least a year to keep the address. Yahoo Inc plans to release the inactive accounts unless the current owner logs in again before July 15.
Eight charged for theft
Federal prosecutors in New Jersey on Wednesday unveiled criminal charges against eight people accused of trying to steal at least US$15 million from US customers in an international cybercrime scheme targeting accounts at 15 financial institutions and government agencies. Among the entities targeted were Automatic Data Processing Inc, eBay Inc’s PayPal, JPMorgan Chase & Co and the US Department of Defense, prosecutors said.
Clearwire mulls takeover bid
US broadband firm Clearwire urged its shareholders on Wednesday to accept a takeover offer from satellite communications giant Dish Network over another from wireless carrier Sprint. Clearwire is at the heart of a battle for a chunk in the lucrative US wireless market pitting Dish against Japan’s Softbank to take over Sprint Nextel.