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Indonesia’s central bank further loosened its monetary policy on Thursday, surprising investors and signaling that it favors growth over efforts to contain inflation.

Bank Indonesia cut the policy rate by 25 basis points to 5.75 percent, the lowest level since the rate was first set in 2005. It had kept the benchmark rate unchanged at 6 percent in the bank’s previous two monthly meetings after reducing it by a combined 75 basis points in October and November.

“From the domestic front, it is the board of governors’ view that our economy remains strong, though the growth is trending down in line with the prospect of the global economy slowing down,’’ said central bank spokesman Difi A. Johansyah.

“Domestic demand and strong investment will remain the drivers of growth.”

Bank Indonesia had been expected to keep its benchmark rate unchanged at 6 percent, according to a Bloomberg survey of 15 economists, even amid a bleak outlook stemming from the euro zone debt crisis and a weakening global economy. Only five of the economists correctly predicted the rate cut.

Southeast Asia’s largest economy joins other regional policy makers in easing monetary policy. Central banks in the Philippines and Thailand cut their borrowing costs in the past month, but in South Korea, Australia and Malaysia, rates were maintained in recent weeks.

Economists and analysts in Indonesia have said that Europe’s sovereign debt crisis will crimp demand for Indonesian goods, which in turn is likely to slow growth.

Bank Indonesia forecasts the economy to expand at the lower end of its growth target this year, 6.3 percent. It grew 6.5 percent in 2011, the fastest pace since 1996.

The Central Statistics Agency (BPS) reported last week that inflation slowed in January to 3.65 percent — the smallest price increase since March 2010. The central bank has an inflation target of 3.5 percent to 5.5 percent for 2012 and 2013.

David Sumual, an economist at Bank Central Asia who correctly predicted Thursday’s rate cut, said that worries about an acceleration in inflation have eased because the government might postpone restrictions on subsidized fuel.

“Inflation in January could be the lowest this year. So the window for Bank Indonesia to cut its rate is big,’’ David said in a text message to the Jakarta Globe.

Bank Indonesia said on Thursday that its decision to loosen policy was meant to “boost growth” amid a slowing global economy. It forecast the economy to expand by 6.5 percent in the first quarter from a year earlier.