SBI rate down slightly to 15.11 percent

The weighted average interest rate on one-month Bank Indonesia SBI promissory notes fell slightly to 15.11 percent at the Wednesday weekly auction, the central bank said.

The benchmark interest rate was at 15.14 percent last week.

Bank Indonesia said it accepted Rp 17 trillion (US$1.93 billion) in bids at the auction, or 85.5 percent of total bids.

Bank Indonesia has been allowing domestic rates lower as inflationary pressure subsides along with the rupiah's current sharp appreciation against the U.S. dollar.

Lower rates will help spark the much-needed economic growth as well as reduce the interest rate of government bonds issued to finance the bank bailout program in the late 1990s.

Bank Indonesia officials have earlier said that the central bank was quite comfortable with the rate level of around 15 percent. -- JP