Benchmark rate drops again

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)