Lower Interest Rate Expected to Accelerate Economic Recovery
Bank Indonesia (BI) is optimistic that the lower benchmark interest rate can accelerate the recovery of the national economy, which has been severely affected by the COVID-19 pandemic.
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Residents cross in front of the Bank Indonesia fence to access the Bank Indonesia area in Jakarta, Thursday (21/02/2019).
JAKARTA, KOMPAS - Bank Indonesia (BI) is optimistic that the lower benchmark interest rate can accelerate the recovery of the national economy, which has been severely affected by the COVID-19 pandemic. Loans are expected to grow and foreign fund inflow will also increase.
BI decided to lower its seven-day reverse repo rate by 25 basis points (bps) to 3.75 percent from 4 percent during its board of governors’ meeting was held in Jakarta on Nov. 18-19. The benchmark rate is the lowest since the central bank changed its seven-day repo rate on Aug. 19, 2016.