SBI rate down to 9.53%

SBI rate down to 9.53%

JAKARTA: The interest rate of one-month Bank Indonesia SBI
promissory notes fell to a six-year low of 9.53 percent during
the weekly Wednesday auction, from 9.71 percent the previous
week.

The central bank has been guiding its benchmark rate down in
the hope of encouraging banks to lower their lending rates and
help the corporate sector obtain cheaper loans for working
capital.

The lower rate should also help ease the government's burden
in servicing its huge domestic debt.

Analysts have said that the SBI rate could still go down
further, especially if inflation could be kept below 7 percent.

Last month's annualized inflation was calculated at 6.9
percent. -- JP