Indonesia’s central bank delivers surprise 25 bps rate cut

[JAKARTA] Bank Indonesia (BI) unexpectedly cut its benchmark interest rate on Wednesday (Sep 18), marking its first reduction since February 2021.

The central bank lowered the rate by 25 basis points (bps) to 6 per cent, confounding analysts who did not expect it to move preemptively ahead of the US Federal Reserves.

It also cut the overnight deposit facility and lending facility rates to 5.25 per cent and 6.75 per cent, respectively.