A 25-Basis Point Central Bank Rate Cut in Indonesia
June 16, 2016
Bank Indonesia cut the BI Rate, which had been reduced by 25 basis points each in February 2015 and January, February and March of this year, was cut to 6.5% from 6.75%. A released statement cited ” low inflation, a narrower current account deficit and relatively stable exchange rates” and opined that “the new policy mix is expected to bolster efforts to stimulate domestic demand in order to drive domestic economic growth momentum, while maintaining macroeconomic stability, amid weak global economy. Bank Indonesia believes that the monetary and macroprudential policy easing will strengthen Government’s policy to increase sustainable economic growth through strengthening growth stimuli and accelerating structural reforms.”
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Tags: Bank Indonesia