Bank Indonesia got behind President Prabowo Subianto’s bid to galvanize growth following widespread cost-of-living protests, delivering a surprise interest rate cut amid swirling questions about the central bank’s independence.
BI lowered its benchmark BI-Rate to 4.75% on Wednesday, as predicted by just two of 38 economists polled by Bloomberg News. Stocks rose and the rupiah strengthened slightly, though it remains Asia’s worst-performing currency in the past month.