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