Indonesia cuts benchmark interest rate to 6.75 percent

Staff Writer
Columbus CEO

JAKARTA, Indonesia (AP) — Indonesia's central bank cut its benchmark interest rate by a quarter point to 6.75 percent Thursday to enhance domestic demand and bolster economic growth, an official said.

Bank Indonesia spokesman Tirta Segara said the cut, the third this year, was consistent with greater room to ease monetary policy, solid macroeconomic stability, a decrease in inflationary pressures and an easing of global uncertainties.

The cut is expected to bolster economic growth while maintaining macroeconomic stability amid sluggish global growth, Tirta said.

He said the bank's Board of Governors will be cautious in determining future monetary easing, taking into account the domestic economy, the stability of financial systems, and global economic developments.

The key interest rate was lowered in January and again last month after staying at 7.5 percent since February 2015.

Bank Indonesia will strengthen coordination with the government to control inflation, support growth and ensure that structural reforms remain on track to support sustainable economic growth, he said.