Bank Indonesia Poised to Resume Rate Cuts as Growth Falters

Indonesia’s central bank is expected to resume lowering interest rates as the US-China trade truce and the rupiah’s ensuing rebound open up a window of opportunity for policymakers to spur economic growth.

Bank Indonesia will cut its benchmark interest rate by 25 basis points to 5.5% on Wednesday, according to 22 of 35 economists surveyed by Bloomberg, with the rest expecting no change. The BI-Rate has been kept on hold since a reduction in January as the central bank fended off currency pressure spurred by the US’ tariff threats.