Indonesia Surprise Cut to Boost Growth and Markets, Analysts Say

The Indonesian central bank’s surprise interest-rate cut would provide the domestic economy and local assets with a much needed boost, according to analysts.

The Jakarta Composite Index extended gains to 1% after the rate decision, while the benchmark bond yield erased earlier advances, slipping to 6.4%. The rupiah held earlier losses, closing 0.2% lower at 16,270 per dollar.