Indonesia's central bank reduced its key interest rate unexpectedly to the lowest level since 2022 to stimulate economic growth and also raised expectations for more rate reductions.
The Bank Indonesia board, governed by Perry Warjiyo, decided to cut the BI rate by 25 basis points to 4.75 percent. Markets anticipated the central bank to hold the rate this time amid political unrest.
The bank has lowered the benchmark rate by 125 basis points so far this year. The current level of 4.75 percent is the lowest since October 2022.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.