Indonesia: Bank Indonesia surprises with second rate cut in two months

• Indonesia’s central bank announced a surprise cut to its policy rate on 22 Aug 19, citing the need to move the economy after slowest growth in two years.
• Bank Indonesia cut its benchmark seven-day reverse repo rate by 25 basis points to 5.5%, the second rate cut in two consecutive months — after slashing it for the first time in nearly two years in Jul 19.
• Governor Perry Warjiyo had earlier said room for policy rate cuts remain open until the end of 2019.
• Still, Bank Indonesia’s decision had been unexpected, due to renewed concerns from trade tensions. U.S. President Donald Trump’s announcement of new tariffs on China has weighed down on the rupiah.

External Link : https://asia.nikkei.com/Economy/Bank-Indonesia-surprises-with-second-rate-cut-in-two-months