Economics
Indonesia Cuts Rates, Signals More Easing as Growth Weakens
- Most economists surveyed expected cut after two straight holds
- Central bank joins government in slashing its growth forecast
This article is for subscribers only.
Indonesia’s central bank cut its benchmark interest rate for the first time in three months and lowered its growth outlook for the year, days after the government warned of a severe hit to the economy from the coronavirus pandemic.
Bank Indonesia lowered its seven-day reverse repurchase rate by 25 basis points to 4.25% on Thursday, ending a two-month pause. Fifteen of 22 economists in a Bloomberg survey correctly predicted the decision, while the rest saw no change.