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BENGALURU (Feb 18): The Indonesian rupiah was little changed while stocks declined after the country s central bank cut interest rates by 25 basis points, as expected, and downgraded the economic growth outlook for 2021. Bank Indonesia (BI) slashed the benchmark rate to 3.50%, its sixth since the start of the pandemic, but saw limited room for any more cuts even as it acknowledged the weakness in policy transmission since loans have struggled to pick up. Rupiah was flat in the run-up to the decision after weakening 0.7% over the past two sessions, while stocks fell 0.4%, retreating from a 0.9% jump in the morning trade. BI also trimmed the lending facility rate and relaxed some borrowing rules as it now forecasts slower economic growth in 2021 due to the harsh second wave of Covid-19 infections, but banked on vaccines to drive a rebound. 

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