Indonesian central bank has lending rates cut

By：Xinhua Update：2020-03-25

JAKARTA, March 24 (Xinhua) -- The Indonesian central bank, Bank Indonesia, on Tuesday, asked banks in the country to trim their lending rates to help pare down risks of the coronavirus spread on the economy.

Governor of Bank Indonesia Perry Warjiyo encouraged banks to adjust their lending rates to the reduction of the central bank's seven-day reverse repurchase rate.

"We ask banks to immediately edge down the interest of their credits," he said.

The Indonesian central bank has cut its key rate by 50 basis points to 4.5 percent this year to help shore up the economic growth amid the COVID-19 pandemic.

The loan growth nudged lower to 6.08 percent last year from 12.88 percent in the presiding year, according to data from the Financial Services Authority.

The central bank lowered its economic growth forecast this year to between 4.2 and 4.6 percent from the initial estimate of between 5.0 and 5.4 percent, according to Warjiyo.

The COVID-19 pandemic has dragged down Indonesia's exports and imports of capital goods and raw materials as well as affected the tourism sector.