SBI rate declines to 16.88%

JAKARTA: The weighted average interest rate on one-month Bank Indonesia SBI promissory notes fell to 16.88 percent at Wednesday's weekly auction from 16.89 percent, the central bank said.

Bank Indonesia also said it accepted Rp 27 trillion rupiah (US$2.6 billion) in bids at the auction, or 94.77 percent of total bids.

Over the past two months, Bank Indonesia has been cutting interest rates from nearly 18 percent late last year to help ease the government burden in covering the interest rate of its bank recapitalization bonds and reduce the cost of bank borrowing for companies. -- JP