Indonesia Central Bank Cut BI Rate 50 Basis Points

On February 4, 2008 Bank Indonesia cut the BI Rate for 50 basis points. The new rate is 8.25%. This decision is used to stimulate the economics condition of Indonesia in the beginning of 2009. Last week the Bank of England cut the interest rate 50 basis points for the UK interest rate. The new interest rate is 1%.

The decreasing of the interest rate in almost all countries in the world is the respond of the decreasing in global economics condition. The lower interest rate will stimulate the economics especially for manufacturing industry. The lower interest rate will give opportunities to manufacturing industry in making investment. The new investment will give working opportunity to the people therefore will reduce the unemployment.