Economics
Indonesia Has Space to Cut Rates as Rupiah Gains: Decision Guide
- Most economists in survey expect Bank Indonesia to lower rate
- Central bank warns economic growth may miss revised projection
Bank Indonesia headquarters in Jakarta.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Indonesia’s central bank is expected to cut its benchmark interest rate for the third time this year as recent gains in the currency allow policy makers to shift their focus to bolstering the economy amid the coronavirus pandemic.
Bank Indonesia will lower its benchmark rate by 25 basis points Tuesday to 4.25%, according to 19 of 25 economists surveyed by Bloomberg, with the rest expecting no change. The central bank, which paused last month after lowering rates at two consecutive meetings, has already flagged that another cut may be in the pipeline.