The Indonesian central bank decided Tuesday to cut the benchmark interest rate by 50 basis points to 11.75 percent on the back of improved macroeconomic indicators.

The much-awaited decision was made during a meeting of the Bank Indonesia board of governors here.

"The decision was made after we take into account the evaluations on improved Indonesia's macroeconomy, easing external pressures, results from various surveys and better outlook of the economy and the monetary development," Bank Indonesia spokesman Budi Mulia said after the meeting.

High Bank Indonesia benchmark interest rate, or BI Rate, is widely blamed for preventing bank credits into businesses and soaring interest on bank loans, which in turn discouraged markets in credit-backed businesses such as automotive sales and property.

Source: Xinhua