(MENAFN) Indonesia's central bank cut interest rates in a surprise move, reversing a rate rise from three months earlier after a feared increase in inflation from fuel subsidy cuts did not eventuate, Gulf Daily News reported.
Bank Indonesia's 25 basis point cut in the benchmark rate to 7.5 percent, the latest in a series of easing by central banks around the world, showed it thought inflation was under control after the plunge in global oil prices.
"The commencement of a disinflation cycle has allowed Bank Indonesia to jump through it. This move is driven more by changing inflation risks rather than changing growth risks," ANZ Bank economists said.
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