* Central bank cut its key interest rate to 6.75 percent, forecast 6.75 percent
* Central bank says inflation may be below 5-7 pct end 2009 forecast
JAKARTA, July 3 (Reuters) - Indonesia's central bank rate decision following monthly policy meeting.
KEY DATA:
Announcement date Rate (percent)
-----------------------------------
03-July-2009 6.75
03-June-2009 7.00
05-May-2009 7.25
03-April-2009 7.50
04-March-2009 7.75
04-Feb-2009 8.25
07-Jan-2009 8.75
04-Dec-2008 9.25
06-Nov-2008 9.50
CONTEXT:
- The central bank has cut rates from 9.5 percent since December as monetary authorities globally slashed borrowing costs to try to revive the ailing global economy.
- Most central banks have stopped cutting rates as signs have emerged that the worst of the global slump is over, prompting financial markets to start pricing in when rates might start to rise again.
- Analysts in a Reuters poll had expected Bank Indonesia to
cut its interest rate
- They expect rates to fall to 6.50 percent by the end of the year, the poll showed. [ID:nSP513648]
- Data on Wednesday showed annual inflation in June fell to 3.65 percent, its lowest level in nine years. [ID:nJAK484345]
- Bank Indonesia Deputy Governor Hartadi Sarwono said on June 29 there was room to cut rates again. [ID:nJAK455139]
LINKS:
- BI rate details.....
- Stories on Indonesia's economy...........[ID:nIDECONOMY]
- Stories on Indonesia's central bank......[ID:nIDCENBANK] (Reporting by Adriana Nina Kusuma; Writing by Sonya Angraini; Editing by Ed Davies)