BI steps up action to boost economy amid political pressure

Jakarta

INDONESIA's central bank reduced its main interest rates and reserve ratio for lenders, taking more determined action to boost the economy in the face of political pressure.

Governor Agus Martowardojo and his board lowered the benchmark reference rate by 25 basis points to 7 per cent, Bank Indonesia (BI) said on Thursday. The monetary authority also lowered the reserve-requirement ratio for lenders by 100 basis points to 6.5 per cent.

Falling crude prices are helping to curb inflation in Indonesia, giving policy makers room to focus on supporting an economy that expanded last year at the slo…