Indonesia Central Bank Cuts Rates by 25 Basis Points, as Expected
- On May 21, Bank Indonesia reduced its key policy rate by a quarter of a percentage point to 5.5 percent, marking the second time it has eased monetary policy this year.
- The rate cut follows expectations tied to easing US-China trade tensions and aims to support a stable rupiah and domestic economic growth.
- Indonesia's economy grew 4.87 percent in the first quarter, slightly down from 5.02 percent, while inflation remains mild and within the target range of 1.5 to 3.5 percent.
- According to Governor Perry Warjiyo, the decision aligns with projections of controlled inflation to support rupiah stability and foster economic growth despite ongoing global uncertainties.
- The cut signals cautious optimism but acknowledges ongoing trade policy risks, with further gradual easing expected to support loan expansion and economic momentum.
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Indonesia c.bank resumes monetary easing with 25 bps cut to support slowing economy
Indonesia's central bank cut its key interest rate on Wednesday as the market expected, resuming its monetary easing to support the slowing economy after pressure on the rupiah receded. Bank Indonesia (BI) lowered the benchmark 7-day reverse repurchase rate , known as the BI Rate, by 25 basis points to 5.50%, as expected by 20 of 32 economists polled by Reuters. It also cut two other policy rates by the same amount.
·United Kingdom
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Indonesia central bank cuts rates, as expected
Indonesia's central bank cut its key interest rate on Wednesday (May 21), as expected by the market, resuming its monetary easing after holding policy steady at its previous three meetings.
·Malaysia
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