Time to Lower Interest Rate

Despite the issue of the current account deficit, the central bank has decided to cut its benchmark interest rate in an effort to drive the domestic economy. Bank Indonesia has hinted at the possibility of cutting the interest rate.

KOMPAS/PRIYOMBODO

A BNI employee transports a stack of rupiah banknotes on Tuesday (21/5/2019) at the BNI Cash Center in Jakarta. Bank Indonesia has estimated that the cash demand during the Ramadan-Idul Fitri holiday season was Rp 217.1 trillion, a year-on-year increase of 13.5 percent.

Despite the issue of the current account deficit, the central bank has decided to cut its benchmark interest rate in an effort to drive the domestic economy.

Bank Indonesia (BI) has hinted at the possibility of cutting the interest rate. In a recent statement, the central bank said it was open to taking an accommodative monetary policy in line with the low inflation and efforts to boost the domestic economy.