MW: Indonesia lowers interest rates by half-point to 8.25%
Indonesia's central bank Wednesday cut interest rates by 0.5-percentage point to 8.25%, adding to a half-point rate cut last month, citing abating inflationary pressures and a slowing economy. The rate cut was inline with most analyst expectations. "Various latest indicators showed that global economic development is gloomier than it was expected several months ago," Bank Indonesia said in a written statement at the conclusion of its monthly policy meeting. The central bank also noted demand for Indonesian exports had been negatively impacted by the global downturn. Indonesia's statistics bureau said earlier this week inflation is expected to ease to 9.16% on an annual basis in January, from 11% in December. HONG KONG (MarketWatch) -- Indonesia's central bank Wednesday cut interest rates by 0.5-percentage point to 8.25%, adding to a half-point rate cut last month, citing abating inflationary pressures and a slowing economy. The rate cut was inline with most analyst expectations. "Various latest indicators showed that global economic development is gloomier than it was expected several months ago," Bank Indonesia said in a written statement at the conclusion of its monthly policy meeting. The central bank also noted demand for Indonesian exports had been negatively impacted by the global downturn. Indonesia's statistics bureau said earlier this week inflation eased to 9.16% on an annual basis in January, from 11% in December. Wednesday's rate reduction was the third in as many months.
