SBI rate down to 15.51%

SBI rate down to 15.51%

JAKARTA: The weighted average interest rate on one month Bank
Indonesia SBI promissory notes fell sharply to 15.51 percent at
the weekly Wednesday auction from 15.81 percent last week.

Bank Indonesia said it accepted Rp 17 trillion in bids at the
auction, which represents 65.64 percent of total bids.

The central bank has been allowing its benchmark interest rate
to go down since the beginning of this year amid signs of easing
inflationary pressure. The rate was over 18 percent late last
year.

The lower interest rate environment would help ease the burden
of the state budget in covering the interest cost of government
bonds issued in the late 1990s to bailout banks. -- JP