Indonesia's Central Bank Delivers Surprise Rate Cut

BI RATE - JAKARTA. Indonesia's central bank delivered its first rate cut in more than three years on Wednesday, opting to move hours ahead of the widely expected start of the U.S. Federal Reserve's easing cycle in a bid to bolster growth in Southeast Asia's largest economy.

Bank Indonesia (BI) unexpectedly trimmed the benchmark rate by 25 basis points to 6.00%, its first rate cut since February 2021. Only 3 out of 33 economists polled by Reuters had predicted the move, while all the others expected rates to be held steady.