Indonesia's central bank unexpectedly cut policy rates on Wednesday, resuming its monetary easing to prop up growth in Southeast Asia's largest economy despite financial market volatility that has sharply weakened the rupiah currency.

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.

Indonesia's rupiah fell to its lowest in more than six months while stocks rose nearly 2%, after the central bank delivered a surprise rate cut.

Indonesia’s central bank caught markets off guard with a surprise rate cut, upending expectations that it would keep policy settings on hold to help stabilize the rupiah.

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.

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