Economics
Bank Indonesia Adopts New Policy Rate to Help Boost Economy
- Central bank moves to seven-day reverse repo rate from August
- Bank Indonesia will reduce lending facility rate in August
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Indonesia’s central bank said it will use the seven-day reverse repo rate as its benchmark policy instrument to help spur lending and support growth in Southeast Asia’s biggest economy.
The new benchmark -- which is the interest the central bank pays to borrow from commercial lenders, currently at 5.5 percent -- will replace the 12-month reference rate of 6.75 percent, Bank Indonesia said on Friday. Bloomberg News reported on the move three days ago.