The central bank (Bank Indonesia/B.I.) reduced its 7-day reverse repo rate by 25bps to 5.50% during its August meeting, the second straight cut in two months, in an attempt to support growth amid low inflation expectations. Last month’s rate cut was the first time since September 2017 amid growing concerns about global growth due to continued trade tensions and a number of geopolitical risks. The overnight deposit and lending facilities were also trimmed by the same amount to 4.75% and 6.25%, respectively.
