BI expects interest rate cut as inflation eases

The central bank expects more room to lower its benchmark interest rate, lowering the cost of borrowing, in the coming months as inflation is likely to show further moderate gains.

“We hope inflation can be controlled. We’ll wait and see,” said Bank Indonesia governor Boediono as quoted by state news agency Antara on Wednesday.

He said the central bank would announce its interest rate policy Jan. 6 after receiving December inflation figures from the Central Statistics Agency.

Boediono also said the country’s economic growth in the last quarter of 2008 had slowed.

“Despite this slowdown, overall economic growth in 2008 will stand at about six percent.” (and)