Indonesia central bank governor sees room for further rate cuts

[JAKARTA] Indonesia's central bank has room for further cuts in its benchmark interest rate with inflation low and economic growth weak, Governor Perry Warjiyo said in a joint news conference with other financial authorities on Tuesday.

Mr Warjiyo said Bank Indonesia (BI) kept interest rates unchanged earlier this month to underpin the rupiah, but "we of course saw there was room to lower interest rates".

BI would consider inflation, the exchange rate, economic contraction and other factors at its next policy meeting in November, the governor said, while reiterating that he thought the most effective measure to support the economy was via quantitative easing.

REUTERS