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Indonesia's Central Bank Surprises With Rate Cut

JAKARTA, Aug 20 (Reuters) - Indonesia's central bank cut interest rates in a surprise move on Wednesday, stepping up support for Southeast Asia's largest economy against a backdrop of global uncertainties.

Bank Indonesia (BI) trimmed the benchmark 7-day reverse repurchase rate by 25 basis points to 5.00%, its fifth rate cut since September taking the rate to its lowest level since late 2022.

Only five of 29 economists polled by Reuters had expected a cut on Wednesday. The rest expected rates to be held steady.

The overnight deposit and lending rates were also cut by the same amount to 4.25% and 5.75%, respectively.

Reporting by Gayatri Suroyo, Stefanno Sulaiman and Fransiska Nangoy; Editing by John Mair

Source: Reuters


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