Economics
Indonesia Cuts Rate For Third Month, Signals Cautious Path
- Bank under pressure to support government growth drive
- Rupiah rebound this year creates room for monetary easing
The headquarters for Bank Indonesia are seen standing in Jakarta.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Indonesia’s central bank cut its main interest rate for the third straight month to boost growth, and signaled it will be more careful in any further policy easing.
Governor Agus Martowardojo and his board lowered the reference rate by 25 basis points to 6.75 percent, Bank Indonesia said on Thursday. That was in line with the forecasts of 15 of the 24 economists surveyed by Bloomberg, while the rest predicted no change. The monetary authority also cut its lending facility and deposit facility rates by 25 basis points each.