Central Banks
Indonesia Surprises With Rate Cut, Intervenes in FX Market
- Rupiah slides even as central bank intervenes in market
- Governor says central bank is both ‘pro-stability and growth’
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Indonesia defied market expectations by cutting its key interest rate, moving to bolster economic growth even after the local currency’s recent slide beyond the key level of 16,000 to the dollar.
Bank Indonesia lowered the benchmark BI-Rate by 25 basis points to 5.75% on Wednesday. The 38 economists surveyed by Bloomberg News unanimously expected the central bank to leave policy unchanged at 6% for a fourth straight meeting.