Indonesia Cuts Key Interest Rate by 0.25% Ahead of Expected Fed Move

Bank Indonesia's unexpected rate cut aims to support economic growth amid signs of easing global liquidity conditions.

Bank Indonesia reduced its key interest rate to 6%, marking the first cut in over three years.
The decision comes ahead of anticipated rate cuts by the U.S. Federal Reserve, which are expected to weaken the dollar.
Analysts believe the rate cut will attract foreign investment into Indonesian bonds and stocks, supporting the rupiah.
Governor Perry Warjiyo indicated that the central bank is shifting focus from stability to a balance between stability and growth.
The rate cut is expected to aid incoming leader Prabowo Subianto's goal of boosting economic growth to as high as 8% annually.