Indonesia finmin: U.S. rate cut to pave way for emerging markets to lift growth

FILE PHOTO: Indonesia's Finance Minister Sri Mulyani Indrawati attends the World Economic Forum on ASEAN at the Convention Center in Hanoi, Vietnam September 12, 2018. REUTERS/Kham

JAKARTA (Reuters) - The U.S. Federal Reserve’s third rate cut this year should create space for many emerging markets to boost their economic growth and increase investment, Indonesia’s Finance Minister Sri Mulyani Indrawati said on Thursday.

“The Fed’s interest rate cut gives some kind of a pause after the previous situation when rates were hiked, which left many emerging markets to face the consequences,” she told reporters on the sideline of an economic forum.

“The cut gives space to everybody to be able to use the momentum in a bid to boost economic growth and to make investment more positive,” Indrawati said.

The Fed cut interest rates for the third time this year on Wednesday to help sustain U.S. growth amid a slowdown in other parts of the world, but signaled there might be no further reductions.

Reporting by Maikel Jefriando; Writing by Tabita Diela; Editing by Gayatri Suroyo and Muralikumar Anantharaman