SBI rate slides slightly

SBI rate slides slightly

JAKARTA: The weighted average interest rate on one-month SBI promissory notes slid slightly at the central bank's weekly auction Wednesday.

The one-month SBI notes stood at 15.16 percent, down from 15.17 percent last week's auction, Bank Indonesia said. It was, however, higher than market expectations of around 15.07 percent.

Bank Indonesia also said it accepted Rp 20.50 trillion (US$2.3 billion) in bids at the auction, or 93.02 percent of total bids.

Bank Indonesia has been guiding domestic interest rates lower slowly amid receding inflationary pressures and the rupiah's appreciation against the dollar.

Lower interest rates should accelerate economic growth and help reduce the costs shouldered by the government to bail out local banks. -- Dow Jones