People walk past a mock one thousand Rupiah coin on display at Bank Indonesia's headquarters in Jakarta. (File photo: REUTERS)

Jakarta (VNA) –
Indonesia has cut interest rates for the first time in nearly two years as Southeast Asia’s largest economy seeks to boost economic growth.

Bank Indonesia (BI) on July 18 reduced the key lending rate 25 basic points to 5.75 percent, a decision made ahead of an anticipated rate cut by the US Federal Reserve (Fed) later this month.

BI also lowered its deposit and lending facilities rates by 25 basic points to 6.5 percent and 5 percent respectively.

BI Governor Perry Warjiyo said the decision was made because the bank estimates inflation will remain low and it needs to maintain the momentum for the country’s economic growth.

Indonesia’s economy grew at 5.07 percent in the first quarter of this year-VNA