JAKARTA) - INDONESIA'S central bank said it had cut its key interest rate on Thursday in a bid to stimulate economic growth and minimise the impact of the global financial crisis.
Bank Indonesia (BI) cut its benchmark rate by 25 basis points to 9.25 per cent, officials said.
Analysts told Dow Jones Newswires that the surprise cut indicated the bank has shifted its focus away from controlling inflation to boosting overall growth.
The stock market would likely react warmly to the rate cut, but at the expense of a weakening rupiah and bond market, analysts said.
Indonesia's annual inflation dropped to 11.68 per cent in November from 11.77 per cent in October due to lower energy and commodity prices.
BI has said inflationary pressures are set to ease in the coming months, opening the door to further rate cuts. -- AFP
