Bank Indonesia announces surprising rate cut
Central bank aiming to boost growth amid stable inflation and global easing cycle
Indonesia’s central bank today (September 18) reduced its key interest rate by 25 basis points to 6%, hours ahead of an expected cut from the US Federal Reserve.
Bank Indonesia (BI) also lowered its overnight deposit and lending rates by 25bp to 5.25% and 6.75% respectively.
It was the bank’s first rates cut since February 2021.
In a statement, BI said that although recent indicators had shown strong economic activity in the third quarter, further efforts were needed to strengthen growth.
Forecaster
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