Indonesia central bank cuts rates, as expected

JAKARTA: Indonesia’s central bank cut its key interest rate on Wednesday, as expected by the market, resuming its monetary easing after holding policy steady at its previous three meetings.

Bank Indonesia lowered the benchmark 7-day reverse repurchase rate, known as the BI Rate, by 25 basis points to 5.50%, as expected by 20 of 32 economists polled by Reuters.

Indonesia central bank conducts currency intervention whenever necessary, official says

The rest had predicted BI would stand pat.

The central bank also cut its overnight deposit facility and lending facility rates by the same amount to 4.75% and 6.25%, respectively.