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Jakarta Post

BI cuts rates, relaxes lending rules to stoke growth

  • Marchio Irfan Gorbiano

    The Jakarta Post

Jakarta   /   Fri, September 20 2019   /  12:21 am
Perry Warjiyo (JP/Anggie Angela)(JP/Anggie Angela)

Perry Warjiyo (JP/Anggie Angela)Bank Indonesia (BI) has cut its key rate for a third consecutive month and relaxed down payment rules and intermediation requirements for banks to encourage more loans, boost economic activity and in turn stoke growth amid global risks.The central bank on Thursday cut its monetary policy benchmark, the seven-day reverse repo rate, by 25 basis points (bps) to 5.25 percent. The lending and deposit rates were also slashed by 25 bps to 6 percent and 4.5 percent, respectively.Down payment requirements for housing and vehicle loans will be reduced by between 5 and 10 percentage points (ppt) starting Dec. 2, BI announced. This will allow consumers to make a down payment of only 15 percent on motorcycle or car purchases, down from 20 percent and 25 percent required now. Environmentally friendly houses and electric vehicles can get an additional down payment relaxa...