Indonesia central bank says key rate 'already low', eyes virus outbreak
AdvertisementIndonesia central bank says key rate "already low", eyes virus outbreak14 Jun 2021 02:30PMShare this contentBookmarkJAKARTA: Indonesia's benchmark interest rate of 3.50per cent was already low, central bank governor Perry Warjiyo said on Monday, while also underlining the central bank's efforts to accelerate bank lending ahead of a policy review this week.
"We're continuing to push for interest rate transparency (among banks) because BI's benchmark has gone down sharply since last year. We've cut six times" the Bank Indonesia (BI) governor told a hearing with parliament's finance commission, referring to a total of 150 basis point reduction since the coronavirus pandemic began.
AdvertisementAdvertisement"At 3.50per cent, we view the rate as already low and this is to back up the rupiah," he said, adding that BI was focusing on trying to push down lending rates for new loans.BI is scheduled to review its policy in a two-day meeting ending on Thursday. A Reuters poll of 26 analysts predicted BI would keep the key rate unchanged for a fourth straight meeting. headtopics.com
At its past meetings, Warjiyo had said BI held rates to anchor the rupiah by making sure returns on Indonesian assets were attractive and to prevent capital outflows.The governor told lawmakers the rupiah had so far remained"stable" at 14,300 a dollar, but BI was monitoring potential pressure from global uncertainties especially in relation to U.S. markets.
AdvertisementAdvertisementOn the domestic front, Warjiyo said BI was assessing the impact of a recent rise in COVID-19 cases on people's mobility, corporate performance and financial market stability."The spillover to stability of the financial system is something that we need to anticipate very much," he said.
He also said data so far had suggested Indonesia's loan growth could turn positive in the second quarter, supporting BI's forecast of 5per cent to 7per cent loan growth in 2021.On top of cutting rates, BI has injected 819 trillion rupiah (US$57.62 billion) of liquidity into the financial system during the pandemic, including 115.87 trillion rupiah purchases of government bonds in the primary market.
Advertisement(Reporting by Tabita Diela; Writing by Gayatri Suroyo; Editing by Ed Davies) Read more: CNA »
Outpouring of support will spur me on, says Joseph Schooling after Olympics exit
TOKYO: Less than a day after his exit from the 2020 Olympic Games, Joseph Schooling sits on a foldable chair in the shadow of the hulking Tokyo ...
Indonesia central bank to keep key rate at record low for 4th straight meeting Indonesia 's central bank will likely keep interest rates at record lows on Thursday, a Reuters poll showed, after its governor pledged to keep ...
Virus outbreaks at Thai factories threaten export sector, recovery
Virus outbreaks at Thai factories threaten export sector, recoveryA series of coronavirus outbreaks in Thai factories is raising concerns that the export sector could be hit hard, threatening to further undermine an economy as it struggles to recover from the pandemic's crippling blow to the crucial tourism industry. The virus has swept through over 130 factories, including those supplying international brands, with more than 7,100 cases across 11 provinces, making manufacturing one of the top sources of infections along with prisons and construction camps. The affected plants are just a fraction of about 63,000 factories in Thailand that employ 3.4 million, government data shows, but officials worry about the impact on exports that have kept the struggling economy moving as income from tourism has collapsed.
Rolls-Royce’s new ‘entry-level’ limo will still cost you S$1.5 millionOddly enough, despite its impressive size and price tag, it’s a remarkably restrained and relatively low-key.
Fire engulfing Pertamina refinery remains ablaze, says CEOJAKARTA: A fire at an oil refinery owned by Indonesia 's Pertamina at Cilacap, Central Java, was still ablaze on Saturday, the CEO of the state ...
Indonesia Pertamina says fire at refinery extinguishedJAKARTA: Indonesia 's state oil firm Pertamina said on Sunday it had extinguished a fire at its refinery in Cilacap, Central Java, and supplies ...