JAKARTA - Indonesia's central bank has reduced its key interest rate by a quarter percentage point to 7.5 percent. The governor of Bank Indonesia said Friday the decision was made after closely watching economic developments at home and abroad.
Many countries worldwide are cutting interest rates to give a spur to economic activity. Bank Indonesia governor Boediono said Indonesia's economy was expected to grow by between 3 percent and 4 percent this year, down from an earlier forecast of 6 percent.
It is the fifth straight month Bank Indonesia has cut rates since October when its main rate stood at 9.5 percent.