Indonesia’s move to cut rates fails to lift consumer spending


JAKARTA: A cut in interest rates by Indonesia’s central bank may not be enough to give sluggish consumer spending a jolt, as weakness in purchasing power and a reluctance by banks to lend undercuts efforts to boost South-East Asia’s biggest economy.

Bank Indonesia (BI) on Tuesday unexpectedly cut its benchmark policy rate for the first time since October, bringing the rate down 25 basis points to 4.5%.

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Business , Indonesia , interest rate , economy

   

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