Indonesia’s central bank, trying to help speed up sluggish economic growth, on Thursday cut its benchmark interest rate for the second time this year and lowered the banking sector’s reserve requirements in another easing move.
Thirteen of 19 economists surveyed by Reuters had predicted Bank Indonesia (BI) would cut its key rate BIPG by 25 basis points to 7.00 percent, following a trim in January of the same size.
BI kept rates unchanged for nearly all of 2015 as it sought to battle high inflation and support the country’s fragile rupiah IDR=.
The central bank also lowered its overnight deposit rate, known as the Fasbi, by 25 basis points to 5 percent, and slashed commercial banks’ rupiah reserve requirements by a hefty 100 basis points in a move expected to boost liquidity by 34 trillion rupiah ($2.52 billion).
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