Central Banks

Indonesia central bank cuts key rate by 25 bps to 7.00 pct

Dimas Ardian | Bloomberg | Getty Images

Indonesia's central bank on Thursday cut its benchmark reference rate for the second time this year, as expected, in a bid to spur economic growth.

The key rate was trimmed by 25 basis points to 7.00 percent, while the overnight deposit facility rate and lending facility rate were cut by the same amount to 5.00 percent and 7.50 percent, respectively.

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The central bank also cut the reserve requirement ratio for banks' rupiah deposits by 100 basis points to 6.5 percent to further loosen policy and aid economic growth.

Thirteen of 19 economists in a Reuters poll of economists had forecast a cut of 25 basis points for the benchmark rate.

Southeast Asia's largest economy grew 4.8 percent in 2015, the weakest pace since 2009.

Bank Indonesia targets annual headline inflation rate at 3-5 percent this year. The annual rate in January was 4.14 percent.

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