Indonesia central bank: Decision on further monetary easing will be ‘dynamic’

Indonesia central bank: Decision on further monetary easing will be ‘dynamic’

BI on Thursday trimmed its benchmark rate for the sixth time this year, bringing it down to 4.75 percent.

Bank-Indonesia
JAKARTA: Senior official at Indonesia’s central bank signalled that it may continue to ease policy after Thursday’s rate cut, but the timing will depend on data including the inflation rate and current account deficit.

“Whether there will be further easing, it will be very dynamic. We will look from month to month. Indicators that we will monitor are inflation, current account deficit… loan growth, banks’ lending rates and economic growth,” Juda Agung, BI’s executive director of monetary and economic policy, told reporters.

Earlier on Thursday, BI trimmed its benchmark rate for the sixth time this year, bringing it down to 4.75 percent.

It said the transmission of its earlier monetary easing on commercial banks’ lending growth has not been optimal.

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