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Indonesia gave local bankers a surprise last week by cutting interest rates a full 50 basis points, but moves like this are becoming more common as Asia chooses to nurture flagging growth instead of fighting persistent inflation. Bank Indonesia cut its benchmark rate to a record low of 6%, providing far more aggressive stimulus than even the most dovish economists expected. Considering that Indonesia ( IDX , quote ) has wrestled with major commodity inflation -- the country now imports many key resources, including oil -- this is a huge step for Jakarta. But they do not seem worried at all about global inflation at the moment. They are growing almost as fast as any other country in Asia and still cutting interest rates. If this is any indication of what other central banks are thinking, we might eventually get some upside surprises out of markets like Malaysia ( EWM , quote ) and South Korea ( EWY , quote ). And with everyone looking to Beijing to clarify its monetary policy before the government changes next year, we could even go from nervously dreading the next surprise rate hike in China ( FXI , quote ) to hoping for a rate cut some day soon. After all, inflation seems to be receding for the time being, while growth fears are front and center. Back in Indonesia, ultra-low interest rates have already been a boon for local lenders like Bank Mandiri ( PPERY , quote ). The latest cut is unlikely to hurt.

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