Indonesia's central bank on Thursday cut its benchmark rate for the third time this year and signalled it may ease further, as Southeast Asia's largest economy struggles to avoid a recession amid the broadening fallout of the coronavirus pandemic.
JAKARTA - Indonesia’s central bank on Thursday cut its benchmark rate for the third time this year and signalled it may ease further, as Southeast Asia’s largest economy struggles to avoid a recession amid the broadening fallout of the coronavirus pandemic.
Bank Indonesia cut the 7-day reverse repurchase rate IDCBRR=ECI by 25 basis points to 4.25%, the lowest since 2018, and Governor Perry Warjiyo said there was space for more cuts as long as the rupiah remained stable.The move came a few days after the finance minister warned of recession risks, with gross domestic product expected to shrink by 3.1% in the second quarter - the first contraction since 1999 - and possibly contract again in the following three months.
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