Central Banks
Indonesia Surprises With Quarter-Point Cut Before Fed Move
- Bank Indonesia cuts to 6% as seen by 10 of 36 economists
- Monetary easing will boost growth, support financing: Warjiyo
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Indonesia’s central bank unexpectedly cut its key interest rate for the first time in more than three years, as an imminent Federal Reserve pivot allowed it to ease ahead of its own guidance and turn its focus on supporting the economy.
Bank Indonesia lowered the BI-Rate by a quarter-point to 6%, a decision seen by only 10 of 36 analysts in a Bloomberg News Survey, with the rest expecting a hold. Governor Perry Warjiyo signaled last month that BI would wait until the fourth quarter, when Fed cuts are underway.