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Jakarta Post

Moral suasion: Authorities urge banks to cut lending rates to boost virus-battered economy

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Fri, March 6, 2020   /  07:09 am
The Jakarta Post Image
An employee moves packs of bank notes to the cash pool at Bank Mandiri in Jakarta in this undated photo.(The Jakarta Post/Seto Wardhana )

The government and financial sector authorities have urged banks to lower their lending rates to encourage business growth amid concerns the COVID-19 outbreak will hit the economy hard. Government, Bank Indonesia (BI) and Financial Services Authority (OJK) officials met with bank executives on Thursday at the OJK’s headquarters in Jakarta, where the officials called on banks to lower lending rates, especially for small and medium businesses and companies in sectors hit by the novel coronavirus outbreak. “We hope the transmission of the benchmark interest rate policy will be felt [immediately] by the public,” Coordinating Economic Minister Airlangga Hartarto told reporters after the meeting. Read also: Coronavirus fears lead to cancellations, postponement of more events at home The central bank cut its benchmark interest rate, the seven-day reverse repo ...