Indonesia unexpectedly cuts interest rates
First cut since October hopes to boost disappointing growth
Bank Indonesia cut the 7-day reverse repurchase rate by 25 basis points to 4.50% despite economists’ expectations of a hold, reports Reuters.
Other policy rates, including the deposit facility and lending facility were also cut by the same amount, to 3.75% and 5.25%, respectively.
After six rate cuts last year, the central bank has still struggled to push growth above the 5% pace, with President Joko Widodo’s 7% target looking increasingly out of reach.