Benchmark rate drops again

JAKARTA (JP): The benchmark interest rate on one-month Bank Indonesia promissory notes (SBI) fell to 23.48 percent at Wednesday's auction from 24.65 percent previously, the central bank announced.

It noted the interest rate declined by 12.9 percent over the past two months.

The central bank has allowed the interest rate to continue to decline on the back of improving macroeconomic conditions. It is eying a rate level of between 17 percent and 20 percent by the end of the year.

The interest rate on the three-month promissory notes also fell on Wednesday to 23.33 percent from 29.82 percent in the previous month. (rei)