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Indonesia cuts interest rate to spur growth

Indonesia’s central bank (Bank Indonesia) on August 22 unexpectedly cut its policy interest rate to 4.5 percent from 4.75 percent as the Southeast Asia’s biggest economy is seeking to boost economic growth.
Hanoi (VNA) – Indonesia’s central bank (Bank Indonesia) on August 22 unexpectedly cut its policy interest rate to4.5 percent from 4.75 percent as the Southeast Asia’s biggest economy isseeking to boost economic growth. 

Cutting the interest rate will strengthen thestability of the financial system and support the higher economic growth,according to Bank Indonesia governor Agus Martowardojo.

In the second quarter of this year, Indonesia’s economy grew 5.01 percent,unchanged from the previous quarter, but below the government target of 5.2 percent growth for 2017.

The country’s inflation is projected to be at3.5 percent in 2018, lower than this year’s prediction of 4.3 percent. The exchange rate between Indonesian Rupiah (IDR) and US dollar for nextyear is predicted at 13,500 IDR per USD, compared to this year’s rate of 13,400IDR/USD.

According to the Indonesia Central Bureau ofStatistics, the foreign direct investment (FDI) into the country increased 10.6percent to 109 trillion IDR (8.2 billion USD) in the second quarter of thisyear. Improvement of the investment environment is the first priority of thePresident Widodo administration in order to achieve the 7-percent growth. -VNA
VNA
#Indonesia central bank #Bank Indonesia #cut interest rate #policy interest rate #economic growth #financial system stability #higher economic growth #inflation #Indonesia Central Bureau of Statistics #Vietnam news #VietnamPlus #Vietnam News Agency Indonesia
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