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View all search resultsBank Indonesia (BI) plans to roll out additional macroprudential liquidity incentives (KLM) on Dec. 1 through new disbursement schemes to boost sluggish credit growth and expedite the pass-through of central bank rate cuts to commercial banking rates.
The government has announced plans to shift some state deposits from the central bank to commercial banks to allow for more loan disbursements and thereby invigorate private sector activity in a bid to achieve 6 to 7 percent gross domestic product growth.
While the central bank's recent decision to raise the BI Rate by 25 basis points to 6.25 percent may not have been popular, it was the appropriate measure to respond to the current global turmoil and to anchor future inflation.
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