SBI rate down to 16.90%

SBI rate down to 16.90%

JAKARTA: The weighted average interest rate on one-month Bank
Indonesia SBI promissory notes fell to 16.90 percent at the
weekly auction on Wednesday, from 16.92 percent last week.

Bank Indonesia said it accepted Rp 21 trillion (about US$2
billion) in bids at the auction, or 72.6 percent of total bids.

The benchmark interest rate has been on a declining trend over
the past several weeks. The interest rate was near the 18
percent level late last year.

Lower interest rates are crucial for helping to ease pressure
on the state budget in repaying the interest on government bonds
and to help cash-strapped companies seek bank loans. -- JP