Indonesia resumes cutting rates to boost growth | 2016-09-23 |

Indonesia resumes cutting rates to boost growth

23 September, 2016 12:00 AM printer

JAKARTA: Indonesia’s central bank cut its benchmark interest rate Thursday in a bid to boost sagging growth, given space to act thanks to the Fed’s decision not to raise the cost of borrowing.
Bank Indonesia slashed the rate by 25 basis points to five percent, as expected. The bank shifted to using the current, more short-term focused benchmark last month in a bid to more quickly transmit changes in borrowing costs to the real economy, reports AFP.
It was the fifth cut to the benchmark rate this year and the first reduction since June, as policymakers scramble to boost Southeast Asia’s top economy, which has been losing steam in recent years due to slowing demand for its commodity exports.