10:18 pm, Wednesday, 17 September 2025

Bank Indonesia surprises markets with 25bp rate cut

Sarakhon Report

Policy shift to spur demand

Bank Indonesia cut its 7-day reverse repurchase rate by 25 basis points to 4.75%, surprising economists who had expected rates to hold. The central bank said the move aims to support domestic demand while inflation remains subdued.

Market and regional implications

The cut follows an easing cycle that began last year and could spur currency and bond market moves across Southeast Asia. Analysts warned investors to watch monetary signals from other regional central banks for spillover effects.

06:41:15 pm, Wednesday, 17 September 2025

Bank Indonesia surprises markets with 25bp rate cut

06:41:15 pm, Wednesday, 17 September 2025

Policy shift to spur demand

Bank Indonesia cut its 7-day reverse repurchase rate by 25 basis points to 4.75%, surprising economists who had expected rates to hold. The central bank said the move aims to support domestic demand while inflation remains subdued.

Market and regional implications

The cut follows an easing cycle that began last year and could spur currency and bond market moves across Southeast Asia. Analysts warned investors to watch monetary signals from other regional central banks for spillover effects.