Jakarta: Indonesia's central bank Thursday cut its key interest rate for the third straight month, encouraged by lower inflation and a stronger currency in Southeast Asia's top economy.
Bank Indonesia lowered the rate by 25 basis points to 6.75 percent, following cuts of the same amount in February and January.
The bank left rates virtually unchanged in 2015, reluctant to make a move amid high inflation.
But slower price rises in recent months, and easing uncertainty in global financial markets, helped policymakers make another cut, the bank said in a statement.
A rebound in the rupiah -- which strengthened more than 3 per cent against the US dollar in the year to February -- was also cited as a factor behind the decision.
The bank hopes the cuts will spur growth in Indonesia's economy, which in 2015 dipped below five per cent for the first time since the global financial crisis.
Indonesia's economy has lagged for some time as demand, especially from China, for key commodity exports has waned.
AFP
