Indonesia’s central bank made its third rate cut this year today (June 18), taking its benchmark rate to its lowest level in two years.

Bank Indonesia cut the benchmark seven-day reverse repurchase rate by 25 basis points to 4.25%, in a move widely expected by market observers. It also started to purchase government debt directly from auctions as foreign demand for the country’s sovereign bonds remains weak.

Some private sector analysts warned that the Indonesian economy is likely to further