Indonesian central bank cuts policy rate by 25 basis points

Kyodo News

Posted at Oct 24 2019 06:59 PM

JAKARTA - Indonesia's central bank on Thursday cut its benchmark interest rate for the fourth straight month in an attempt to boost domestic economic growth.

The benchmark seven-day reverse repurchase rate was cut by 0.25 percentage point to 5 percent amid estimates that inflation is under control and that investment yields would remain attractive, Bank Indonesia Governor Perry Warjiyo told reporters at a press conference.

The rate cut is also considered a preemptive measure to boost domestic economic growth amid the global economic slowdown due to a lingering trade war between the United States and China, he added.

The bank cut the policy rate by 0.25 percentage point in each of the previous three months.

Warjiyo also said that Indonesia's economy is on track to grow between 5 and 5.4 percent this year.