Bank Indonesia once again cut BI-7DRRR by 25bps to 4.00 percent after the Board of Governors meeting on July 15-16 2020. The slow world economy recovery is one of the deciding factors for the cut. BI projected that Indonesian economic growth in QII/2020 would be deeply contracted in the range of 4%. The central bank also predicted low yearly inflation with YoY position of 1.96%, so further steps are needed to direct the inflation number to the set target. Other than cutting benchmark interest rate, this month’s RDG also emphasize on some BI commit-ments, such as: continuing IDR exchange rate stability policy, purchase of govern-ment securities (SBN) from the primary market to support the 2020 state budget funding, and accelerating payment system digitization.
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