JAKARTA - The Indonesian central bank on Wednesday reduced its benchmark interest rate for a seventh straight month by 25 basis points to 7.0 percent to help spur economic growth, the bank said in a statement. Indonesia's economy is struggling to achieve the 4.5 percent target set for this year.
Consumer prices rose 6.04 percent last month from a year earlier after gaining 7.3 percent in April, the statistics agency BPS said. The slowdown of the banking sector in response to the reduction of lending rate has also triggered the bank to cut the rate. Indonesia's economy grew by 4.4 percent in the first quarter this year, mainly supported by consumption by households and the government.