June 25, 2019 / 11:16 AM / 3 months ago

Indonesia has room for rate cuts, says finance minister - BBG

Indonesian Finance Minister Sri Mulyani arrives for a G-20 Finance Ministers and Central Bank Governors' meeting at the IMF and World Bank's 2019 Annual Spring Meetings, in Washington, April 12, 2019. REUTERS/James Lawler Duggan/Files

LONDON (Reuters) - Indonesia’s central bank has room to cut interest rates, the country’s finance minister said on Tuesday, adding it is still aiming for 5.1% - 5.2% GDP growth this year despite the pressures of the global trade war.

“We see a lot of room for them (central bank) to manoeuvre within the second half of this year,” Sri Mulyani Indrawati said in an interview with Bloomberg television.

She added that low inflation gave the central bank the leeway to cut rates, while the gap between Indonesia’s rates and those of other emerging countries and advanced countries like the United States would be another key factor.

“Indonesia has stable inflation, low at 3% so there is always room for them to do this adjustment,” Indrawati said.

Reporting by Marc Jones; editing by Helen Reid

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