Bank Indonesia under pressure from falling inflation

Bank Indonesia cuts rate for the second consecutive month

Bank Indonesia
Bank Indonesia cut the policy rate at its latest meeting
Photo: Christopher Jeffery

Bank Indonesia has cut rates in the face of a steady slide in inflation, and some observers believe it may have to take further action this year.

Following the meeting ending on September 22, Bank Indonesia unexpectedly announced it was lowering the seven-day reserve repo rate by 25 basis points, to 4.25%. The central bank likewise cut its policy interest rate by 25bp at its August meeting. The central bank has cut interest rates six times in 2016 and twice this year.

Bank Indonesia’s

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