KONTAN.CO.ID - JAKARTA. Indonesia's central bank cut interest rates to a record low on Thursday and urged commercial banks to follow suit as it sought to reignite Southeast Asia's largest economy which has been hard hit by the coronavirus pandemic.
Bank Indonesia (BI) cut the 7-day reverse repurchase rate by 25 basis points to 3.75%, against the expectations of a majority of economists in a Reuters poll. Eight out of 22 economists surveyed expected the move.
Indonesia's rupiah pared losses after the rate cut, while shares also picked up a notch. The Philippine central bank also cut rates unexpectedly on Thursday as the two countries hardest hit by COVID-19 in Southeast Asia kept their monetary policy taps open.