Economics
Indonesia Signals Rate Cut Is Coming as Reserve Ratio Eased
- Bank Indonesia keeps key rate at 6%, in line with survey
- Reserve requirement ratio for banks reduced to spur lending
This article is for subscribers only.
Indonesia’s central bank signaled it’s ready to cut interest rates in coming months after adding stimulus to the economy by easing reserve limits for banks.
Bank Indonesia left its seven-day reverse repurchase rate at 6% on Thursday, as predicted by 28 out of 35 economists surveyed by Bloomberg. The primary reserve ratio for commercial and Shariah lenders was lowered by 50 basis points from July 1 and is expected to add 25 trillion rupiah ($1.76 billion) in liquidity to the banking system.