The Indonesian central bank on Thursday cut the benchmark interest rate, known as BI rate, by 25 basis points to 12.25 percent.

"After evaluating the macroeconomic conditions, the economic prospect and the inflation target in 2006, the board of governors' meeting decided to cut the BI rate by 25 basis points to 12.25 percent," said Bank Indonesia governor Burhanuddin Abdullah.

In the next several months, the BI rate still has room for further cuts due to tame inflation and stronger rupiah, he added.

Source: Xinhua