JAKARTA, June 16 (Xinhua) -- Indonesian central bank, the Bank Indonesia (BI), reduced its benchmark rate by 0.25 basis point (bps) to 6.50 percent on Thursday, making it the lowest one throughout this year.
"The BI rate was trimmed to 6.5 percent with deposit rate decreased to 4.5 percent and lending rate to 7.0 percent, taking effect on Friday," BI Director of Communications Department Tirta Segara told a press conference.
The decision to reduce the benchmark rate was announced at the end of 2-day BI governor board meeting.
The Indonesian central bank reduced the benchmark rate three times between January to March this year from 7.50 percent to 6.75 percent. The latest rate was still applied in the following months of April and May.
Tirta said that the central bank and the government now are continuing the coordination to control inflation, improve the stimulus for growth and structural reforms which are eventually expected to support the efforts to gain sustainable growth in the country.
