Interest rate cut overshadows bomb blast impact on Indonesian stock market

After a two-day meeting in a venue only two-kilometres away from the bomb blast, Bank Indonesia yesterday announced a 25-basis-point cut in its benchmark policy rate to 7.25%, a measure that is seen as a move to support the growth of the waning domestic economy.

KUALA LUMPUR: Jakarta’s capital markets staged a strong recovery, helped by an interest rate cut by its central bank that shore up investor sentiment, which was reeling from a deadly terrorist attack.

After a two-day meeting in a venue only two-kilometres away from the bomb blast, Bank Indonesia yesterday announced a 25-basis-point cut in its benchmark policy rate to 7.25%, a measure that is seen as a move to support the growth of the waning domestic economy.