Jakarta (Antara Bali) - The central bank lowered its reference rate, the BI Rate, by 25 basis points from 6.0 to 5.75 percent on Thursday.
Bank Indonesia spokesman Difi A Johansyah said the decision was taken because inflation continues to drop, while the economy is growing stronger.
"Indonesia's economy remains strong, although its growth is slowing. In the first quarter of 2012 the economy is projected to grow 6.5 percent. Overall in 2012, the growth tends to reach the lowest end at 6.3 percent, while inflation continues to decline," he said.
He noted that the board of governors said during the meeting that the decision was taken to stimulate growth in the midst of the global economic slowdown by continuing to prioritize inflation targets and the stability of the rupiah exchange rate.
With the decision, the range of interest for Bank Indonesia monetary operations would be 3.75 percent for the deposit facility rate and 6.5 percent for the lending facility rate, he said.(IGT)
