Bank Indonesia reassures markets as rupiah slips to six-month low

Indonesia’s central bank reassured that the rupiah’s decline against the US dollar was manageable, despite reaching a six-month low on Thursday due to an unexpected interest rate cut.

“The market reaction that occurred this morning is still under control and short term in nature because market participants are still digesting BI’s decision yesterday,” Edi Susianto, Bank Indonesia’s (BI) head of monetary management.

BI will continue to manage the supply and demand of foreign exchange. In a surprise move, BI reduced its key policy rate by 25 basis points to 5.75 percent on Wednesday in order to stimulate economic growth.

Attribution: Reuters

Subediting: Y.Yasser