Indonesian central bank cuts interest rate for fourth straight month

Hanoi (VNA) - Indonesia's central bank cut interest rates for the fourth month in a row on October 24 as Southeast Asia's largest economy looks to counter slowing global growth.

Bank Indonesia (BI) decided to lower its key lending rate by 25 basis points to 5 percent, prompting speculation that more cuts could be in store as central banks around the world adopt softer monetary policies.

IB Governor Perry Warjiyo said the policy is consistent with low inflation expectations and is a measure to boost domestic economic development amid a global economic slowdown.

Indonesian President Joko Widodo chose former World Bank managing director Sri Mulyani Indrawati to serve another term as Finance Minister in the context that the country is facing weaker prices for key commodities like coal and palm oil as the global economy falters and demand dries up.

Economic growth eased to 5.05 percent in the second quarter of 2019 – the slowest quarterly expansion in two years, as both exports and investment slipped.

Research house Capital Economics said the slowing economy and subdued inflation mean BI would certainly like to cut interest rates again in the coming months.

Indonesia's currency was at risk of weakening against the USD as investors remain cautious because of a stumbling world economy and the US-China trade war, it added./.