Indonesia’s central bank has cut its benchmark interest rate to 7.25% from 7.5% in an attempt to give its struggling economy a boost.
It is the first time that the bank has cut interest rates since February last year.
Low inflation and weak fourth quarter economic growth numbers were some of the reasons cited for the cut.
The bank’s decision was announced as deadly bombs and gunfire attacks rocked the country’s capital, Jakarta.
Earlier this week, analysts were divided on whether or not Bank Indonesia (BI) would make a move. The country has been been facing its slowest pace of growth since 2009 and a weakening currency.
However, they said the bank had clearly given priority to boosting the economy over worries that a looser policy would push the currency down further.
The rupiah depreciated by some 10% in 2015 and has since fallen a further 0.7% this year.
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