# Bank Indonesia's rate cut shows its comfort with rupiah outlook - The Business Times

> Bank Indonesia unexpectedly cut its benchmark rate by 25 basis points to 4.5%, while most economists had expected no change. The central bank cited an improving inflation outlook and a rupiah it considers manageable, with the Fed expected to deliver only one more hike this year.

- Date: 2017-08-22 · published 2017-08-22T12:00:00.000Z
- Category: macro · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/69771-bank-indonesia-s-rate-cut-shows-its-comfort-with-rupiah-outlook-the-business
- Commodities: [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md)

## Why it matters

Lower rates can add pressure on the rupiah and raise import costs for Indonesian feed and meal buyers. The move signals the central bank sees room to support growth without destabilising the currency.

## Read by commodity

- USDIDR: bullish ▲

## Sources

- businesstimes.com.sg: https://www.businesstimes.com.sg/international/bank-indonesias-rate-cut-shows-its-comfort-rupiah-outlook

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.