JAKARTA — Indonesia’s central bank decided on Wednesday to cut its benchmark interest rate for the first time since February 2021 by 25 basis points (0.25%) to 6%, after hiking it steadily since the post-COVID economic recovery.

Bank Indonesia Gov. Perry Warijiyo said the cut was aimed at boosting the economy at a time when inflation is expected to remain low, at around 2.5% through next year. The governor also said expectations that the U.S. Federal Reserve would cut its rate at its policy meeting Wednesday had prompted BI to act preemptively.