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Stability over growth

Stability over growth Asia News Network (ANN) is the leading regional alliance of news titles striving to bring the region closer, through an active sharing of editorial content on happenings in the region. ....

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Stability over growth

Stability over growth
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Banks Need to Step Up as BI Runs Out Options to Spur Recovery

Banks Need to Step Up as BI Runs Out Options to Spur Recovery
BY :JAKARTA GLOBE
APRIL 21, 2021
Jakarta. Indonesian central bank s latest decision to keep its benchmark interest rate may indicate that it has no further room to lower its interest rate this year as higher global yields growing higher and weaker rupiah limit its options, shifting the crux to the local banks lower to their lending interest rates to support the economy.
Bank Indonesia, the country s central bank, kept the policy rate on hold at 3.5 percent for the second straight month in line with the consensus on Tuesday.
Perry Warjiyo, the central bank s governor, said the the decision is consistent with the need to maintain rupiah exchange rate stability amidst persistently elevated global financial market uncertainty despite projected low inflation. ....

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