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BI signals another rate cut

22 July 2019 16:32

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo has indicated that the central bank is open to lowering interest rates further. This was conveyed to the House of Representatives’ Budget Committee, Monday (22/7).

“Going forward, we see that there is still enough room for accommodative monetary policies,” Mr Warjiyo told the Budget Committee as quoted by Bisnis.com.

Last week’s BI Board of Governors’ Meeting decided to slash the BI 7-Day Reverse Repo Rate by 25 basis points (bps) to 5.75% as well as the deposit facility rate by 25 bps to 5% and the lending facility rate by 25 bps to 6.50%.

Mr Warjriyo said that the policy was pursued to encourage higher economic growth to 5.2% year on year in the second semester of 2019. Through accommodative monetary policies, he added, BI will continue its efforts to maintain a low inflation rate until the end of the year. (MS)

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