Bank Indonesia delivers surprise rates cut
Central bank shifts focus from backing rupiah to supporting growth with 25bp easing
Indonesia’s central bank unexpectedly cut its policy rates today (January 15) to support economic growth.
Bank Indonesia (BI) reduced the benchmark seven-day reverse repurchase rate by 25 basis points to 5.75%, having previously kept it unchanged for four months. The bank also lowered its deposit facility and lending facility rates by the same amount, to 5% and 6.5% respectively.
In September, BI surprised many analysts by cutting rates for the first time since February 2021.
In a statement, the
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