Indonesia's central bank said the rupiah's fall against U.S. dollar was still under control, after the currency slid to its weakest level in more than six months on Thursday following a surprise cut in interest rates the day before.

Bank Indonesia unexpectedly cut its benchmark interest rate by 25 basis points to 5.75%, marking its first rate cut since September 2024. The markets were widely anticipating that the rate would remain unchanged at 6% for a fourth consecutive meeting.

Indonesia’s central bank defied the expectations of practically the entire market when it cut interest rates this week, deepening a period of uncertainty for government bond yields. Most Read from BloombergThese Homes Withstood the LA Fires.

Bank Indonesia (BI) slashed its benchmark interest rate by 25 basis points to 5.75 per cent, defying market expectations and signalling a shift in focus towards revitalising South-east Asia’s largest economy amid signs of a slowdown.

Indonesia defied market expectations by cutting its key interest rate, moving to bolster economic growth even after the local currency’s recent slide beyond the key level of 16,000 to the dollar.Most Read from BloombergThese Homes Withstood the LA Fires.

Indonesias central bank, Bank Indonesia (BI), unexpectedly reduced its benchmark 7-day reverse repurchase rate by 25 basis points to 5.75% on Wednesday, signaling a return to monetary easing. This marks the first cut