Indonesia boosts bank liquidity, holds ratesIndonesia's central bank governor Perry Warjiyo and his deputies arrive to a media briefing at the bank's headquarters in Jakarta on Thursday. As expected by analysts polled by Reuters, Bank Indonesia kept its benchmark seven-day reverse repurchase interest rate rate unchanged at 5.00%, having already cut it four times this year by a total of 100 basis points (bps). The central bank cut its outlook for loan growth to 8% this year, from a range of 10%-12% previously. "Therefore, we expect BI to hold its benchmark interest rate at 5.00% till end-2019," he said, adding that other tools could be used to boost economic growth. But noting the governor's growth concerns, the consultancy believes the rate-cut cycle will continue soon, predicting two more reductions.

Source: Bangkok Post November 21, 2019 11:03 UTC