Indonesia cuts rates unexpectedly

Bank Indonesia's rate-setting board surprised markets on Thursday by lowering its benchmark rate by 25 basis points to 8%.

Economists had tipped rates to stay on hold but the central bank said the economy's "steady improvement" justified a cut and that it was "confident that the rate cut will not disrupt achievement of the inflation target."

Upside risks to inflation posed by factors such as international oil prices were considered in making the decision.

The central bank said it was optimist

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