Indonesia's central bank Thursday cut its key interest rate for the second straight month to spur growth after Southeast Asia's top economy recorded its slowest expansion in 2015 for six years.
Bank Indonesia slashed the rate by 25 basis points to 7.0 percent. The move followed a cut of the same amount in January, which had been the first reduction for almost a year.
The central bank also cut the reserve requirement ratio by 100 basis points to 6.5 percent and made a small reduction to the rate it pays lenders on overnight deposits, with both moves aimed at encouraging banks to lend more and help lift the economy.
"It is hoped these policies will strengthen efforts to lift economic growth," said bank governor Agus Martowardojo, adding there was more room to loosen monetary policy due to lower inflation.
The latest easing came after official data released earlier this month showed the economy grew 4.79 percent last year, the first time it has fallen below five percent since 2009 at the height of the global financial crisis.
However, expansion accelerated in the final quarter and Bank Indonesia forecast Thursday that growth in 2016 will fall within the range of 5.2 and 5.6 percent.
Indonesia's economy has been losing steam for some time on the back of falling demand for its key commodity exports such as coal and palm oil, particularly from China.
Policymakers had previously been reluctant to cut rates due to high inflation, but slower price increases in recent months have given them space to start tightening monetary policy.
President Joko Widodo has made boosting the country's flagging economy a priority. He has launched a drive to attract much-needed foreign investment, ramped up infrastructure projects and introduced bureaucratic reforms.
AFP
Thu Feb 18 2016
![Indonesia cuts rates for second straight month Indonesia cuts rates for second straight month](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2016-02/61454644076_IndonesiaSkyline.jpg)
Indonesia's economy has been losing steam for some time on the back of falling demand for its key commodity exports such as coal and palm oil, particularly from China. - AFP Photo/Bay Ismoyo/Files
PAC beri tempoh tiga bulan kepada HRD Corp
Jawatankuasa Kira-kira Wang Negara (PAC) memberi tempoh tiga bulan kepada Perbadanan Pembangunan Sumber Manusia (HRD Corp) untuk mengemukakan laporan tindakan susulan terhadap syor jawatankuasa itu.
Kylian Mbappe tandatangan kontrak dengan Real Madrid
Bintang bola sepak Perancis Kylian Mbappe menandatangani kontrak selama lima tahun dengan kelab Sepanyol Real Madrid pada Selasa.
Pelepasan ketujuh air sisa nuklear Fukushima ke laut selesai
Jepun telah menyelesaikan pusingan ketujuh pelepasan air sisa radioaktif yang dirawat dari loji kuasa nuklear Fukushima Daiichi ke Lautan Pasifik pada Selasa.
Empat termasuk kapten maut dalam pertempuran
Empat anggota tentera India termasuk kapten meninggal dunia akibat kecederaan selepas pertempuuran pada malam isnin di Hutan Desa.
Pakistan sahkan 4 warganya terbunuh di Oman
Pakistan berkata pada Selasa empat warganya terbunuh dalam insiden tembakan pada malam Isnin berhampiran ibu negara Oman, Muscat.
Lima terbunuh, puluhan cedera dalam protes antikuota di Bangladesh
Sekurang-kurangnya empat orang terbunuh dan puluhan lagi cedera dalam pertempuran antara pelajar yang memprotes sistem kuota dalam pekerjaan sektor awam dan polis di pelbagai bahagian Bangladesh pada Selasa.
Kerajaan cadang perkenal pembiayaan swasta
Kerajaan menyasarkan untuk memperkenalkan pembiayaan swasta alternatif bagi memastikan kemampanan kewangan program sektor air, sekali gus mengurangkan kebergantungan pada perbelanjaan kerajaan dan mengukuhkan daya tahan.
Saya tak fitnah Guan Eng, cuma jelaskan siasatan SPRM - Muhyiddin
Presiden Bersatu Tan Sri Muhyiddin Yassin memberitahu Mahkamah Tinggi Kuala Lumpur hari ini bahawa beliau tidak memfitnah Lim Guan Eng berhubung isu pengecualian cukai terhadap Yayasan Albukhary
KPT alu-alukan dapatan, cadangan PAC - Zambry
Ini termasuklah cadangan pelaksanaan Garis Panduan Pelaburan dan Pembiayaan oleh Universiti Awam 2024 kepada anak-anak syarikat di bawah seliaan Kementerian Pendidikan Tinggi (KPT).
Lebih 340,000 syarikat buat transaksi serah simpan maklumat pemunyaan benefisial
Sebanyak 340,637 syarikat telah membuat transaksi serah simpan maklumat pemunyaan benefisial (beneficial ownership) bagi tempoh 1 April hingga 14 Julai lepas.