Overview

• The 7-day reverse repo rate was reduced by 25 basis points to 4.75%, the lowest since late 2022, bringing total easing to 150 basis points since last September.
• BI also lowered the overnight deposit facility by 50 basis points to 3.75% and the lending facility by 25 basis points to 5.50% to deepen accommodation.
• Governor Perry Warjiyo said the bank will gauge room for additional cuts, stressed ample system liquidity, and urged lenders to reduce borrowing costs.
• Equities hit a record and the rupiah firmed slightly after the move, with investors still wary following recent protests and the dismissal of Sri Mulyani Indrawati.
• The government announced nearly $1 billion in fourth-quarter stimulus, and new finance minister Purbaya Yudhi Sadewa shifted over $12 billion from BI to commercial banks as lawmakers discuss stronger oversight and a growth-focused mandate for the central bank.