Indonesian central bank cuts interest rates despite slight inflation rise
Inflation is expected to remain within target, Bank Indonesia says
Indonesia’s central bank announced its first policy rate cut for 10 months on August 22, despite a slight net rise in inflation since the beginning of the year.
Bank Indonesia’s statement says its board of governors agreed to reduce the seven-day reverse repo rate by 25 basis points to 4.5%. The central bank says it has also made 25bp cuts to its two other policy rates, lowering the deposit rate to 3.75% and the overnight lending facility rate to 5.25%.
Indonesian inflation increased from 3
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