BI makes third surprise cut as lawmakers mull its mandate
Bank says 25bp easing aimed at promoting growth, pledges further monetary-fiscal policy alignment
Bank Indonesia (BI) has defied expectations and cut its key policy rate again, shortly after the country’s parliament discussed widening the bank’s mandate and economists expressed concerns about a possible erosion of its independence.
BI said in a statement today (September 17) that it had eased policy by 25 basis points to 4.75%. The bank said its decision was part of “joint efforts” with the finance ministry to promote growth and keep inflation within its 1.5–3.5% target range.
The central bank
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