Economics
Indonesia Raises Reserve Requirement While Holding Key Rate
- Seven-day reverse repurchase rate kept steady at 3.5%
- Bank increases planned reserve requirement ratio to 9%
Bank Indonesia maintained its economic growth forecast for this year at 4.5%-5.3%.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Indonesia’s central bank tightened reserve requirements for lenders, while keeping its benchmark interest rate unchanged, as it seeks to withdraw excess liquidity without hurting the economy’s recovery from the pandemic.
Bank Indonesia plans to raise the reserve requirement ratio for banks to 9% in September from previously announced 6.5%, Governor Perry Warjiyo said in a briefing Tuesday. It left the main seven-day reverse repurchase rate at 3.5% as forecast by 20 of 30 economists in a Bloomberg survey.