Bank Indonesia delivers surprise rate cut to support growth

The entrance to the Bank Indonesia headquarters in Jakarta, Indonesia. - Photographer: Dimas Ardian/Bloomberg

JAKARTA: Indonesia's central bank unexpectedly cut policy rates on Wednesday, resuming its monetary easing aimed at propping up growth in Southeast Asia's largest economy despite financial market volatility that has weakened the currency.

Bank Indonesia (BI) cut the benchmark 7-day reverse repurchase rate by 25 basis points to 5.75%, its first cut since September.

All 30 economists polled by Reuters had expected no change in rates, citing the pressure on the rupiah.

The bank also trimmed its deposit facility rate and lending facility rate by 25 basis points each to 5.00% and 6.50%, respectively. - Reuters