Economics
Bank Indonesia Cuts Benchmark Rate to Record Low
- More than half of economists in survey expected no change
- Indonesia aims to return to positive growth in fourth quarter
This article is for subscribers only.
Indonesia’s central bank cut its policy rate for the first time in four months Thursday, urging banks to lend more to help drive an economic recovery.
Bank Indonesia cut its seven-day reverse repurchase rate by 25 basis points to 3.75%, the lowest since the benchmark was introduced in 2016, as predicted by 11 of 26 economists surveyed by Bloomberg. One had forecast a 50 basis point cut, while the rest expected the bank to hold rates steady.