Indonesia cuts interest rates to help economic growth

Indonesia's central bank has cut its benchmark interest rate for the first time in nearly a year to help shore up the weak economy.

Bank Indonesia said Thursday that it was cutting its BI rate by a quarter point to 7.25 percent.

The decision was made at the bank's scheduled monthly policy meeting, held on the same day that attackers set off explosions in downtown Jakarta and waged gunbattles with police, leaving at least seven people dead.

Until the latest announcement, the rate had been unchanged at 7.5 percent since February.

The bank said it moved to cut rates because fourth quarter economic growth did not show significant improvement and inflation remained low.