In a statement Bank Indonesia stated that low inflation, a stable rupiah, and an outlook for a manageable current account deficit are factors that allowed the latest rate cut. It added that returns on domestic financial investment assets remain attractive after the cut, while monetary easing is also a pre-emptive measure to stimulate Indonesia’s economic growth momentum against a backdrop of global economic moderation. Not unimportantly the US Federal Reserve had cut interest rates by a quarter percentage point (for the second time since July 2019) one day earlier in an attempt to keep the US economy strong amid troubled international conditions.

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