';
Views Article – Sharenet Wealth

Asia, Forex

Indonesia c.bank makes first rate cut in almost 2 years

JAKARTA, July 18 (Reuters) – Indonesia’s central bank on Thursday cut its benchmark interest rate for the first time since September 2017, ahead of an anticipated Federal Reserve cut late this month, as it tries to help lift economic growth.

Bank Indonesia (BI) trimmed the 7-day reverse repo rate by 25 basis points (bps) to 5.75%, as predicted by 23 of 33 economists in a Reuters poll.

BI’s two other main rates, for overnight deposit and lending facilities, were lowered by the same amount to 5.00% and 6.50%, respectively.

Analysts in the poll predicted the cut would be the first in an easing cycle that would unwind some of 2018’s six rate hikes, which totalled 175 bps and were made to defend the rupiah amid capital outflows. (Reporting by Maikel Jefriando, Tabita Diela, Gayatri Suroyo and Fransiska Nangoy; Editing by Richard Borsuk)


© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.