Bank Indonesia Cuts Rate to 6.75 Percent
Friday, 03 July, 2009 | 16:07 WIB

TEMPO Interactive, Jakarta: Bank Indonesia cut key interest rate by 0.25 percent to 6.75 percent on Friday, the decision was made by the central bank after assessing the local and foreign economic situation.
“Latest indicators show that the global economic have arrived to its lowest point,” Miranda Goeltom of the Bank Indonesia said on Friday.

Export has improved which gained a surplus of US$2.2 billion in the second quarter. Domestic consumptions were rising however the global consumptions had not recovered which was reflected in demand level.

National banking sector according to the central bank was in “good condition” as shown in the rising capital adequacy ratio to an average of 17 percent with credit defaults averaged at below 5 percent.

This is the eighth cut since last December, which brought the rate down from 9.25 percent in December 2008.

The central bank predicted credit level would remained high in a limited time range in the future while inflation could be lowered until the end of the year.

EKO NOPIANSYAH