Bank Indonesia says room to cut policy rate further

[JAKARTA] Indonesia's central bank has room to cut its benchmark policy rate further, a senior official said, after it cut the rate twice in January and February by 25 basis points each. "The room is still there, but we look at it month after month," Juda Agung, Bank Indonesia's executive director of monetary and economic policy, told an economic conference.

He mentioned narrowing monetary policy divergence in advanced economies as providing the room to cut the main rate.

Bank Indonesia's benchmark policy rate is now 7.00 per cent, with annual inflation at 4.14 per cent in January.

REUTERS