Indonesia Central Bank makes surprise rate cut to 6.5pc

JAKARTA: Indonesia's central bank unexpectedly cut its benchmark overnight policy rate by 25 basis points to a record low 6.50 percent on Tuesday to stimulate the domestic economy as global growth slows.

September inflation slowed to 4.61 percent as most food prices eased, but foreign investors have sold off Indonesian stocks and government bonds in recent weeks on euro zone worries. Bank Indonesia had raised the rate by 25 basis points to 6.75 percent in February to address inflation worries.