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Bank Indonesia cuts benchmark rate to 4.75 percent

The logo of Bank Indonesia is patched at the main gate of the central bank's headquarter in Jakarta. (Antara/File)

Bank Indonesia (BI) has cut its seven-day reverse repo rate, the central bank’s benchmark interest rate, by 25 basis points (bps) to 4.75 percent in a bid to stimulate credit growth.

“Amid the weak global [economic] condition, we believe that monetary easing policies can support domestic demand,” BI spokesperson Tirta Segara said in a press conference at the central bank’s office in Jakarta on Thursday.

Latest data from August show the banking industry record 6.8 percent year-on-year growth in lending, lower than that in July at 7.7 percent, because of sluggish corporate credit demand.

BI economic and monetary policy executive director Juda Agung predicted credit growth to hover around 7 to 9 percent by year-end.

“Historically, credit demand will increase again in November and December,” he said. (ags)

Source: Jakarta Post

Link: http://www.thejakartapost.com/news/2016/10/20/bank-indonesia-cuts-benchmark-rate-to-4-75-percent.html