Bank Indonesia Pauses Rate Cuts to Allow Policy Transmission

Bank Indonesia unexpectedly kept its policy rate unchanged after previously vowing to take an “all-out pro-growth” stance, saying it would now assess the impact of previous easing and ongoing fiscal stimulus on Southeast Asia’s largest economy.

The central bank held its benchmark BI-Rate at 4.75% on Wednesday, as predicted by only ten of 39 economists in a Bloomberg survey. The majority had predicted the BI would make a fourth consecutive cut of 25 basis points.