Indonesia Cuts Interest Rate for Sixth Time Before Fed Move

  • Easing in monetary policy comes as Fed hike expecations grow
  • Fourteen of 26 economists in survey forecast BI would hold
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Indonesia’s central bank cut its benchmark interest rate for a second month in a row, injecting stimulus into the economy before the U.S. Federal Reserve moves to tighten policy.

Governor Agus Martowardojo and his board lowered the seven-day reverse repurchase rate to 4.75 percent from 5 percent on Thursday, as forecast by 12 of 26 economists surveyed by Bloomberg. The rest had predicted the benchmark rate would remain unchanged.