Thu, 29 Jan 2004

BI continues to cut interest rate

The central bank cut on Wednesday the interest rate of its one-month SBI promissory notes to a record low 7.86 percent, 20 basis points lower than 8.06 percent in the previous weekly auction.

Bank Indonesia has been slashing the benchmark rate for more than two years to encourage banks to lower their interest rates for lending to the corporate sector. -- JP