Jakarta says FX rules allow for interest rate cuts

Indonesia's chief economics minister said on Jan. 24 the central bank's new forex rules would ease inflationary pressure, which would give room for the bank to cut interest rates. "Pressure from imported inflation should ease. This should allow (the central bank) to reduce interest rates," Rizal Ramli told reporters.

Bank Indonesia last week announced new forex rules aimed at reducing speculative trading in the ailing rupiah currency. The central bank's benchmark SBI interest rates stood at 14.85

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