Bank of Indonesia Cuts Rates to 7.25%

  • Decision forecast by a narrow majority of economists
  • Central bank had to weigh concern over rupiah volatility

The Impact of Jakarta Terror on Markets

Indonesia’s central bank cut its main interest rate for the first time in 11 months, prioritizing a boost to flagging economic growth over concern looser policy could trigger more currency weakness. Bonds rose and stocks pared losses incurred earlier due to deadly attacks in Jakarta.

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