Indonesia's central bank delivered its first rate cut in more than three years on Wednesday, just hours ahead of the widely expected start of the U.S. Federal Reserve's easing cycle in efforts to bolster growth in Southeast Asia's largest economy.

Bank Indonesia’s surprise interest-rate cut may lead to higher foreign inflows into bonds and end up supporting the rupiah, according analysts and strategists.

BENGALURU (Reuters) - Bank Indonesia (BI) will leave interest rates unchanged next week to support the rupiah but was expected to cut next quarter, after widely anticipated policy loosening by the U.S. Federal Reserve on Sept. 18, a Reuters poll found.

Indonesia's central bank surprised markets by delivering its first rate cut in more than three years on Wednesday, moving to bolster growth in Southeast Asia's largest economy ahead of the start of an expected easing cycle in the United States.

The economist who correctly predicted Bank Indonesia’s surprise rate increases in the past year has joined a growing chorus anticipating a pivot to easing on Wednesday, when the central bank decides on monetary policy hours ahead of the Federal Reserve.

Indonesia's central bank delivered its first rate cut in more than three years on Wednesday, just hours ahead of the widely expected start of the U.S. Federal Reserve's easing cycle in efforts to bolster growth in Southeast Asia's largest economy.