Economics
Growth Risks Spur Bank Indonesia to Adopt New Policy Rate
- Central bank set to move to seven-day reverse repo rate
- Change in framework doesn't mean easing in policy: Wiranto
This article is for subscribers only.
Indonesia’s central bank is taking more decisive steps to stimulate lending after three interest-rate cuts this year failed to do the job.
Bank Indonesia will outline plans on Friday to use the seven-day reverse repo rate -- the rate it pays to borrow from commercial lenders -- as its main policy instrument, according to people familiar with the program who asked not to be named. That rate is currently at 5.5 percent and compares with the current benchmark 12-month reference rate of 6.75 percent.