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 stocks, which may end up supporting the rupiah, according to analysts.

Republican presidential candidate Donald Trump said on Thursday the U.S. Federal Reserve's decision to cut interest rates by half of a percentage point was "a political move." "It really is a political move.

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.

Trump attributed the rate reduction to either a "very bad" economy or to the Fed's "playing politics" to help Democrats.

One reason for the muted market reaction on a close-to-close basis has to do with how asset prices moved in the days leading up to the Fed decision, said Sonu Varghese, global mac

Because the rate cut has been forecast for so long, it's largely already been priced into the value of the dollar in international markets. “Exchange rates tend to adjust when a