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Indonesia's central bank surprises with rate cut, raises GDP outlook - REUTERS

AUGUST 20, 2025

Summary

  • 2025 GDP growth outlook seen above midpoint of 4.6%-5.4>#/li###
  • BI has cut rates by 125 bps since September
  • Government says there is room for more easing
  • July loan growth at weakest since March 2022

JAKARTA, Aug 20 (Reuters) - Indonesia's central bank cut interest rates again in a surprise move on Wednesday and flagged it could cut some more, as it stepped up support for Southeast Asia's largest economy against the backdrop of global uncertainties.

Bank Indonesia (BI) trimmed the benchmark 7-day reverse repurchase rate (IDCBRR=ECI) by 25 basis points to 5.00%, its fifth rate cut since September, taking it to its lowest level since late 2022.

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