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Indonesia delivers 4th rate cut to stimulate economic growth

Bank Indonesia reduced its key rates by 25 basis points for the fourth month in a row, to stimulate economic growth amid challenging global economic conditions.

The central bank cut the seven-day reverse repo rate to 5%, the deposit facility rate to 4.25% and the lending facility rate 5.75%.

There could be more rate cuts lined up, as Governor Perry Warjiyo told reporters that "room for accommodative policy mix is still there," depending on incoming data, Reuters reported.

The central bank said global growth is continuing to moderate despite less trade uncertainty amid ongoing U.S.-China trade talks, adding that global geopolitical risks continue to overshadow Indonesia's economy.

Bank Indonesia projects 2019 growth toward the lower end of the 5.0% to 5.4% range, before it hits the midpoint of the 5.1% to 5.5% range in 2020.

Inflation stood at 3.39% in September year over year, well within the central bank's target band of 2.5% to 4.5% for 2019. The central bank maintained its 2% to 4% inflation range for 2020.