KONTAN.CO.ID - JAKARTA. Indonesia's central bank kept its key interest rate unchanged on Tuesday, but cut the amount of cash banks must keep in reserve to inject liquidity into the financial system and help the economy ride out the coronavirus crisis. Central banks around the world have slashed interest rates in the past few weeks and provided additional stimulus to help alleviate the threat to their economies from widespread travel curbs and shutdowns of schools and businesses. Bank Indonesia Governor Perry Warjiyo said the central bank was cutting the reserve requirement ratio for banks by 200 basis points (bps) and 50 bps for Islamic banks, while also tweaking other liquidity rules, effective May 1.
Indonesia central bank holds rates, but cuts RRR to boost liquidity
KONTAN.CO.ID - JAKARTA. Indonesia's central bank kept its key interest rate unchanged on Tuesday, but cut the amount of cash banks must keep in reserve to inject liquidity into the financial system and help the economy ride out the coronavirus crisis. Central banks around the world have slashed interest rates in the past few weeks and provided additional stimulus to help alleviate the threat to their economies from widespread travel curbs and shutdowns of schools and businesses. Bank Indonesia Governor Perry Warjiyo said the central bank was cutting the reserve requirement ratio for banks by 200 basis points (bps) and 50 bps for Islamic banks, while also tweaking other liquidity rules, effective May 1.