Indonesia cuts rates and growth outlook as COVID stings economy

Government also pinning hopes on vaccine rollout to return to growth

20210218 Indonesia Bank

Bank Indonesia cut its key rate for the first time in three months on Thursday, as the country pins hopes on looser monetary policy and its mass vaccine rollout to bolster its flagging economy. (Source photos by Reuters) 

SHOTARO TANI, Nikkei staff writer

JAKARTA -- Indonesia's central bank lowered its benchmark interest rate for the first time in three months and lowered its growth outlook for this year, as the country continues to struggle with the coronavirus pandemic.

Bank Indonesia on Thursday cut the seven-day reverse repo rate to 3.50% from the previous 3.75%, bringing the rate to the lowest since at least 2016 when the central bank began using the rate as its benchmark.

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