Indonesia central bank’s easing cycle to add up to 0.2 pc to GDP this year

JAKARTA, June 18 — Interest rate cuts by Indonesia’s central bank and policies to bolster lending should add up to 0.2 per cent of growth to Southeast Asia’s largest economy this year, a senior official said.

Bank Indonesia has cut benchmark interest rates four times this year, by a total of 100 basis points (bps), most recently on Thursday.

“This year, between 0.1-0.2 per cent will be contributed from those easing,” Juda Agung, the central bank’s executive director of monetary and economic policy, told Reuters late yesterday.

The central bank has also unveiled measures to boost slowing loan growth, including increasing the loan-to-value ratio for property lending.

Agung also said the rupiah, which traded at 13,335 to the dollar yesterday, was at a level “still in line with fundamentals”. — Reuters

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