Indonesia cuts key rate again in bid to spur growth

Jakarta

INDONESIA'S central bank on Thursday surprisingly cut its benchmark interest rate for a sixth time this year, indicating concern that its efforts to jack up sluggish lending and economic growth are not working as hoped. Bank Indonesia (BI) cut the seven-day reverse repurchase rate by 25 basis points to 4.75 per cent.

"In the midst of a weak global economy, we believe this monetary easing will strengthen efforts to push domestic demand, including for credits, so that it could support the momentum for economic growth," BI said. Thirteen of 17 economists in a Reuters poll had expected the benchmark to be kept at 5 per cent.