Jakarta  - Indonesia's central bank cut its benchmark interest rate by 25 basis points to 7.5 per cent Friday to stimulate growth amid the slowing global economy.

Bank Indonesia has reduced the rate by 175 basis points so far this year and has cut it for five-straight months.

"The global economy is still grappling with uncertainty even though there has been positive sentiment related to the G20 agreement to push for improvement in the global capital and financial markets," Bank Indonesia said in a statement.

It referred to the Group of 20 summit held Thursday in London, which brought together the European Union and the world's 19 largest economies, including Indonesia.

Bank Indonesia said it expected the country's economy to grow by 3 to 4 per cent this year. The economy expanded 6.1 per cent in 2008. (dpa)