Indonesia central bank makes third rate cut this year
published : 18 Jun 2020 at 15:13
JAKARTA: Indonesia's central bank on Thursday delivered its third interest rate cut this year, as expected, seeking to boost support for Southeast Asia's largest economy amid a coronavirus-induced downturn.
Bank Indonesia (BI) cut the benchmark 7-day reverse repurchase rate by 25 basis points to 4.25%, the lowest since 2018, as forecast by 18 of 30 economists in a Reuters poll. Eleven others had predicted no change, while one expected a bigger cut.
The central bank also cut the deposit and lending facility rates by the same amount, taking them to 3.50% and 5%, respectively.
In total, BI has trimmed rates by 75 basis points (bps) so far this year to stimulate economic activity, on top of four reductions amounting to 100 bps in 2019.