BI cuts intervention rates

JAKARTA: Bank Indonesia on Thursday cut its overnight rupiah intervention rate to 14.625 percent from 15.125 percent in the money market.

The central bank also lowered by 50 basis points the intervention rate for the one-week maturity to 15.375 percent.

The monetary easing was made after the consumer price index declined by 0.24 percent in April from the previous month, the second monthly deflation in a row.

The central bank has been facing growing pressure to cut domestic rates. Earlier on Wednesday, the interest rate on the one-month Bank Indonesia SBI promissory notes declined to 16.50 percent from 16.61 percent in the previous week auction. -- JP