Indonesian Central Bank Delivers Surprise Rate Cut

BI RATE - JAKARTA. Indonesia's central bank delivered another surprise interest rate cut on Wednesday, its sixth cut since it kicked off an easing cycle in September last year, as it looks to stimulate demand while inflation is low.

Bank Indonesia trimmed the benchmark 7-day reverse repurchase rate by 25 basis points to 4.75%, the lowest since late 2022. All 31 economists surveyed by Reuters had expected no change.

The bank also cut its overnight deposit facility rate by 50 basis points and its lending facility rate by 25 basis points to 3.75% and 5.50%, respectively.