Indonesian central bank cuts interest rate to 9.75 pct

Bank Indonesian Thursday cut the benchmark interest rate by 50 basis points to 9.75 percent, returning it to the single-digit level for the first time in more than a year.

In the whole year, the central bank has cut the so-called BI- Rate by 3 percentage points and the Thursday's cut was the seventh since May.

The inflation rate, a major consideration for Bank Indonesia to determine the interest, was contained at 5.27 percent in November, year-on-year.

Bank Indonesia spokesman Budi Mulya said other supporting factors included a steady rise in export and bigger government's spending.

Source: Xinhua