KONTAN.CO.ID - BENGALURU. Indonesia's central bank will wait until the end of next year before raising interest rates as it tries to aid the economic recovery from the COVID-19 pandemic, keeping a close watch on any U.S. Federal Reserve policy moves, a Reuters poll found. Since the pandemic started, Bank Indonesia (BI) has cut interest rates by a total of 150 basis points and allowed banks to issue loans for the purchase of vehicles and properties without requiring a down-payment to support demand. With the economic recovery still in its early stages and inflation below 2%, BI is expected to hold its benchmark seven-day reverse repurchase rate at a record low 3.50% at its Nov. 18 meeting and freeze it until the third quarter of next year.
POLL-Indonesia's central bank focused on growth, in no rush to raise rates
KONTAN.CO.ID - BENGALURU. Indonesia's central bank will wait until the end of next year before raising interest rates as it tries to aid the economic recovery from the COVID-19 pandemic, keeping a close watch on any U.S. Federal Reserve policy moves, a Reuters poll found. Since the pandemic started, Bank Indonesia (BI) has cut interest rates by a total of 150 basis points and allowed banks to issue loans for the purchase of vehicles and properties without requiring a down-payment to support demand. With the economic recovery still in its early stages and inflation below 2%, BI is expected to hold its benchmark seven-day reverse repurchase rate at a record low 3.50% at its Nov. 18 meeting and freeze it until the third quarter of next year.