SBI rate down to 16.74%

SBI rate down to 16.74%

JAKARTA: The weighted-average interest rate on one-month Bank Indonesia SBI promissory note slightly declined to 16.74 percent at the Wednesday weekly auction, the central bank said.

The rate stood at 16.76 percent previously.

Bank Indonesia said it accepted Rp 11 trillion in bids at the auction, or 82.3 percent of the total bids.

The central bank has been trying to lower its benchmark rate to help reduce the state budget burden in covering the interest rate of government bank recapitalization bonds.

But a significant cut in interest rate is unlikely amid high inflationary threat, analysts have said.

Year-on-year inflation in March rose to 14.08 percent compared to the central bank full-year target of 9-10 percent. -- JP