Central bank trims benchmark interest rate

Monetary shift: A teller counts rupiah banknotes in Jakarta. The currency’s exchange rate is generally prone to volatility in times of global economic turbulence. — Reuters

JAKARTA: Bank Indonesia (BI) has cut its benchmark interest rate by 25 basis points (bps) in an effort to boost economic growth while inflation is under control.

Following the central bank’s two-day monthly policy meeting, BI governor Perry Warjiyo announced at a press conference in Jakarta on Wednesday that the key interest rate, the BI Rate, would be cut to 5.5% from 5.75%.