Jakarta- Indonesia's central bank on Wednesday cut its benchmark interest rate by 50 basis points to 8.75 per cent to support growth amid a global economic slowdown.

The cut was higher than expected after Bank Indonesia reduced the rate by 25 basis points in December.

"For 2009 our monetary policy should pay more attention to efforts to support economic growth while continuing to rein in inflation and stabilise the financial sector," Bank Indonesia governor Boediono, who, like many Indonesians goes by only one name, said in a statement.

Bank Indonesia raised its key interest rate six times during 2008 to 9.5 per cent to curb inflationary pressures.

Inflationary pressures have eased in the past months partly due to falling commodity and oil prices, the central bank's statement said. (dpa)