Economics
Bank Indonesia Cuts Reserve Ratio in Cautious Easing Move
- Central bank keeps key interest rate unchanged at 5%
- RRR for banks cut by 50 basis points in bid to spur economy
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Indonesia’s central bank left its key interest rate unchanged while pumping more liquidity into the financial system to stimulate Southeast Asia’s largest economy.
Bank Indonesia kept the seven-day reverse repurchase rate unchanged at 5% on Thursday following four rate cuts this year, in line with the prediction of 21 of 31 economists surveyed by Bloomberg. Banks’ reserve requirement ratio was cut by 50 basis points, the first such decision since June.