SBI rate slightly lower

SBI rate slightly lower

JAKARTA: The weighted average interest rate on one-month SBI promissory notes edged slightly lower at a weekly auction Wednesday.

The one-month SBI notes stood at 15.06 percent, down from 15.11 percent last week, Bank Indonesia said.

The slight fall in the rate was expected because the fresh selling pressure on the rupiah has constrained the central bank's ability to manage rates downward in line with slowing inflation.

Bank Indonesia has been trying to guide domestic rates lower to reduce the cost of bailing out the nation's banking system in the aftermath of the 1997 Asian financial crisis.

Bank Indonesia officials have said the central bank is aiming to bring the SBI rate down to 13.5 percent by yearend.

Bank Indonesia said it accepted Rp 15 trillion in bids at the auction, or 85.65 percent of the total bids. -- Dow Jones