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Indonesia central bank cuts benchmark rate to 7.25%

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Indonesia's central bank on Thursday cut its benchmark interest rate by 25 basis points to 7.25 per cent to support sagging economic growth, the first rate change in 11 months.

[JAKARTA] Indonesia's central bank on Thursday cut its benchmark interest rate by 25 basis points to 7.25 per cent to support sagging economic growth, the first rate change in 11 months.

Bank Indonesia (BI) also cut its overnight deposit facility rate and lending facility rate by 25 basis points to 5.25 per cent and 7.75 per cent, respectively.

Ten of 16 analysts in a Reuters poll had expected a cut of the policy rate by 25 basis points, with the rest voting for a hold.

Annual inflation in December was at a six-year low of 3.35 per cent, inside BI's target range of 3-5 per cent for 2015 and 2016.

The rupiah was at 13,900 per dollar after the announcement.

REUTERS