Economics
Indonesia Resumes Policy Easing, Reducing Key Rate to 4.5%
- All but six of 28 economists in survey forecast BI would hold
- Price pressures have eased while credit growth has slowed
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Indonesia’s central bank cut its benchmark interest rate by a quarter percentage point, resuming its policy easing to spur growth in Southeast Asia’s biggest economy.
Governor Agus Martowardojo and lowered the seven-day reverse repurchase rate for the first time since October, reducing it to 4.5 percent on Tuesday. All but six of 28 economists surveyed by Bloomberg had expected the benchmark rate would remain unchanged at 4.75 percent.