Bank Indonesia lowered its seven-day reverse repo rate by 25 basis points to 5.0% on Wednesday, marking a second straight month of easing and the lowest policy setting since 2022. The move surprised most economists, who had expected the central bank to pause after July’s cut. Governor Perry Warjiyo said the decision was consistent with subdued inflation and a stable rupiah and aimed at bolstering domestic demand as global trade faces renewed uncertainty from the recently imposed 145% U.S. tariff on Chinese goods. Policymakers also trimmed the overnight deposit and lending facilities by a quarter point, maintaining their usual corridor. Analysts said the additional stimulus should help Indonesia maintain its growth momentum and support local financial assets, though some warned that further easing could be constrained if capital outflows pick up. Bank Indonesia signalled it would continue to monitor external risks while keeping room to “calibratedly” adjust rates in coming months.