November 14, 2021

Indonesia central bank says key rate “already low”, eyes virus outbreak

JAKARTA: Indonesia’s benchmark interest rate of 3.50per cent was already low, central bank governor Perry Warjiyo said on Monday, while also underlining the central bank’s efforts to accelerate bank lending ahead of a policy review this week.

“We’re continuing to push for interest rate transparency (among banks) because BI’s benchmark has gone down sharply since last year. We’ve cut six times” the Bank Indonesia (BI) governor told a hearing with parliament’s finance commission, referring to a total of 150 basis point reduction since the coronavirus pandemic began.

“At 3.50per cent, we view the rate as already low and this is to back up the rupiah,” he said, adding that BI was focusing on trying to push down lending rates for new loans.

BI is scheduled to review its policy in a two-day meeting ending on Thursday. A Reuters…

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