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Indonesia central bank surprises by cutting key rate 25 bps to 5.50%


Kamis, 22 Agustus 2019 / 14:32 WIB
Indonesia central bank surprises by cutting key rate 25 bps to 5.50%
ILUSTRASI. Gedung kantor pusat Bank Indonesia


Sumber: Reuters | Editor: Herlina Kartika Dewi

KONTAN.CO.ID - JAKARTA. Indonesia's central bank surprisingly cut the benchmark interest rate for the second time in two months on Thursday, stepping up a bid to support economic growth amid worries there could be a global recession.

Bank Indonesia (BI) cut the 7-day reverse repurchase rate by 25 basis points to 5.50%, as expected by only two of 19 economists in a Reuters poll. The other 17 had predicted no change.

Baca Juga: Ekonom ini sarankan BI secepatnya pangkas suku bunga

Governor Perry Warjiyo said the decision was consistent with Indonesia's low inflation outlook.

BI's two other policy rates for overnight deposit and lending facilities were trimmed by 25 bps to 4.75% and 6.25%, respectively.

Last month's rate cut was the first time since September 2017, and many saw as the start of an easing cycle. 

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