Economics
Bank Indonesia Steps Up Stimulus in Fourth Rate Cut of 2016
- Inflation rate dropped to lowest in more than six years in May
- Policy makers under pressure to reduce rates as growth slows
Indonesia Cuts Rates for Fourth Time in 2016
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Indonesia’s central bank cut its benchmark interest rate for the fourth time this year, indicating its willingness to support economic growth in the face of mounting global risks.
Governor Agus Martowardojo and his board cut the reference rate by 25 basis points to 6.5 percent after local financial markets had closed on Thursday, in line with the forecasts of 11 of the 29 economists surveyed by Bloomberg. The rest had predicted the rate would stay unchanged.