BI surprises with quarter-point cut

Bank Indonesia surprised markets on Thursday with a 25-basis-point cut in its bank rate that boosted local markets.

The move which lowers rates to 9.25% was the first reduction since December 2007 and broke the pattern of six successive hikes in 2008 from 8% to 9.5%

Jakarta's stock exchange closed 1% up on Thursday as the central bank acknowledged that the effects of the financial crisis and reduced forecasts for in global growth were "becoming visible in the Indonesian economy."

Falling oil and

To continue reading...