Jakarta – Indonesia's central bank cut its key interest rate by a quarter percentage point to 7 percent Wednesday, seeking to spur spending amid a sharp economic slowdown.

It was the seventh month in a row Bank Indonesia cut the lending rate, hoping to counter plunging exports in Southeast Asia's largest economy. The rate stood at 9.5 percent in November.

The bank said it had concluded from close monitoring of international developments that "ongoing pressure on Indonesia's exports persist."

The economy was expected to grow between 3 percent and 4 percent this year, down from an earlier forecast of 6 percent, it said. That was the same forecast as a month ago.

Indonesia is less reliant on exports than other Asian nations, but a more than 30 percent drop this year due to shrinking demand for natural resources and manufactured goods is hitting growth. Imports have tumbled by around 40 percent.