Indonesia, South-East Asia's biggest economy, may not be able to lower interest rates much further because of fear of stoking inflation before the country's general elections next year, a Central Bank official said - Indonesia - Brief Article

Business Asia, Nov, 2003

Indonesia, South-East Asia's biggest economy, may not be able to lower interest rates much further because of fear of stoking inflation before the country's general elections next year, a Central Bank official said. "You have to take into consideration the possible uncertainty in 2004," Maman Somantri, deputy governor of Bank Indonesia, said in an interview in Bangkok before attending a meeting organised by the Bank for International Settlements.

There's "probably not much room left" to lower rates. Indonesia, which will hold parliamentary elections on 5 April and presidential polls on 5 July, has been cutting rates to boost investment and consumer spending to held meet its four per cent growth target this year.