Indonesia's central bank governor said Thursday the bank may cut again the benchmark interest rate after lowering it by 50 basis points to 11.75 percent on Tuesday.

Speaking during a visit to the East Kalimantan capital of Samarinda, Burhanuddin Abdullah, governor or Bank Indonesia, said the decision would depend largely on the inflation level.

"If the inflation rate can meet government's target of 8 percent, we are confident that the interest rate may get lower," the governor was quoted as saying by the national Antara news agency.

However, Abdullah warned that lower interest rate could risk massive capital flow out of the country.

This is the negative impact of interest cut if it fails to encourage the real sector. Rupiah funds will transform into dollar and flow to foreign countries," he said.

Source: Xinhua