Indonesia cuts interest rates for second time this year
According to media reports, Indonesia’s central bank cut its key interest rates for a second time this year to boost the economy. The bank lowered its basic policy rate by 25 basis points to 7%, in line with economists’ expectations while also cutting the overnight deposit rate facility and lending facility rate to 5% and 7.5%, respectively.
In 2015, the Indonesian economy expanded 4.8%, the weakest pace of growth seen since 2009, while the country’s inflation declined to 3.35% last year, posting the lowest level in six years.
The central bank expects the economy to grow between 5.2% and 5.6% this year.