(Aggregate Governor, economists)
* Bank Indonesia keeps its key at 4.00%
Reduce vehicle loan bills
C.bank has lowered its key interest rate by one hundred base points, so by 2020
Governor: more effective quantitative measures for GDP
By Gayatri Suroyo and Fransiska Nangoy
YAKARTA, 19 August (Reuters) – Indonesia’s central bank maintained its key interest rate unchanged on Wednesday, prioritizing market stability, but loosened some loan regulations to bring intake to life in the pandemic economy.
The resolution came after Southeast Asia’s largest economy with 5.32% in the current quarter, more pronounced than expected, and amid an increasing number of coronavirus cases in the country.
The Bank of Indonesia (BI) kept the 7-day reseal rate at 4.00%, and the lowest since at least 2016, when the benchmark rate began, as predicted by top economists in a Reuters survey.
BI has cut the key rate 4 times this year, for a total of one hundred base emissions (bps), in reaction to the pandemic, which added to the total discounts of one hundred bps in 2019 for economic growth.
On Wednesday, the central bank eliminated down payment needs for loans for the purchase of eco-friendly vehicles, starting October 1, for lenders with low retention rates.Previously, the down payment of 5-10%.
“We believe that quantitative measures are more effective in supporting the economic recovery.In what way? Monetary relaxation through the banking system,” Gov. Perry Warjiyo said at an online press conference, while noting that keeping the benchmark rate unchanged would keep a horny spread for foreigners.Investors.
Warjiyo said the central bank would monitor developments in the economy, economic markets and coronavirus cases in its long-term economic policy review.
BI has injected 651.54 trillion rupees ($44.17 billion) into money this year.It also agreed with the government on a $40 billion budget deficit financing plan that involves the central bank buying $28 billion in bonds while relinunting interest payments.
Wisnu Wardana, an economist at Danamon Bank in Jakarta, said BI had ended its rate cuts for the year, and the governor’s comments indicated that lawmakers were comfortable with the symptoms of economic recovery.
Alex Holmes of Capital Economics, however, said there might be additional relaxation to come, with a high-frequency knowledge suggesting that the recovery had begun to slow down, but “as long as the rupee sees a new outbreak of weakness.”
The rupee, recently pressured by global uncertainty, gained 0.5% against the dollar, while the main stock index prolonged its losses after the announcement.
The number of coronavirus cases in Indonesia reached 144,945, up 75% in about a month since the last IB meeting, while another 6,346 people died from COVID-19 disease.
The government has forecast a slight contraction or strong economic expansion this year, however, some analysts’ GDP will contract, the first time for the resource-rich country since the Asian currency crisis in 1998.($1 – 14750,0000 rupees) (Report via Gayatri Suroyo, Fransiska Nangoy and Tabita Diela; editing via Jacqueline Wong)
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