Indonesia Ready to Cut Key Rate Again as Growth Concerns Linger

Traffic in front of the Bank Indonesia headquarters in Jakarta.Photographer: Muhammad Fadli/Bloomberg

Indonesia’s central bank surprised markets by cutting its benchmark rate for a second straight month while signaling more easing is on the table, further shifting monetary policy toward boosting economic growth.

Bank Indonesia lowered the BI-Rate by 25 basis points to 5% on Wednesday in a move predicted by nine of 39 economists surveyed by Bloomberg. Most expected no change.