SBI down to 8.41%<\/p>\n
Bank Indonesia said that its benchmark interest rate declined
\nslightly to 8.41 percent during the Wednesday weekly auction of
\nBank Indonesia SBI promissory notes, compared with 8.42 percent
\nthe previous week.<\/p>\n
The central bank has been cutting the interest rate on its
\none-month SBI notes during the past year amid a relatively benign
\ninflation environment. The benchmark rate was at more than 13
\npercent at the beginning of this year.<\/p>\n
Some analysts have said that the benchmark rate could go as
\nlow as 8 percent by the end of the year amid lower-than-
\nprojected, full-year inflation.<\/p>\n
The central bank has said that full-year inflation would
\nlikely reach only around 4.5 percent, given an ample supply of
\nfood and a stronger rupiah. The government projected inflation
\nthis year to be at around 9 percent.<\/p>\n
The fall in the SBI rate is expected to ease the burden on the
\ngovernment in repaying its huge domestic debt, which is in the
\nform of bonds whose interest rate is linked to the SBI rate.<\/p>\n
In addition, the lower SBI rate has been expected also to push
\nbanks to lower their lending rate for the country's corporate
\nsector, which is badly in need of cash for working capital.
\nUnfortunately, most banks remain reluctant to boost lending to
\nthe corporate sector due to slow progress in the restructuring of
\nthe latter's bad debt problem.<\/p>\n
However, the lower SBI rate has allowed banks to make consumer
\nloans and housing loans cheaper, one of the main reasons behind
\nthe latest boom in the property sector.JP<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sbi-down-to-841-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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