Indonesia's central bank held its main interest rates steady on Wednesday, as expected by a narrow majority of analysts, to support the sliding rupiah, which hit a four-month low earlier in the day. Bank Indonesia (BI) held the benchmark rate at 6.

Indonesia’s central bank stood pat again at its December policy meeting, continuing to hold rates steady as it looks to support the rupiah and the economy.

INDONESIA’S central bank said the rupiah’s sharp fall to fresh four-months on Thursday was due to the impact of the US Federal Reserve’s policy outlook, and said it would act to stabilise the currency against any excessive volatility.

The Indonesian rupiah and the Thai baht weakened ahead of those countries’ central bank policy decisions on Wednesday, while other regional currencies were largely muted and stock markets mixed as investors braced for an expected US rate cut.

Two days before the rate decision, Indonesia’s anti-graft agency searched the headquarters of the central bank, including the office of the governor.

Asian equities fell and the Indonesian rupiah and the Thai baht led losses among currencies on Tuesday, as caution prevailed ahead of key central bank decisions this week, including a widely expected interest rate cut from the US Federal Reserve.

Thailand's central bank left its key interest rate unchanged on Wednesday but said global factors would need to be monitored closely given the heightened economic uncertainty ahead.