BI’s second dovish monetary tones of trimming its benchmark rate (BI 7-DRRR) by 25 bps to 4.50% imitating other central banks’ accommodative stance, i.e., Bank of England (BoE) and the Fed to slash their benchmark rates by 50 bps and 100 bps, respectively. BI had to face horns of dilemmas over its dovish stance bounded in a paradox–economic stimulus tangled in worst-depreciated rupiah. The second cut rates left the rupiah exchange rate for USD sinking to deepest at 15,913 or the worst-depreciated level as of June 1998. Mounting anxieties about the spread of lethal COVID-19 shatter the global economies as BI revised lower its projection of 2020’s loan growth from 10%-12% to 9%-11%. BBRI to focus on disbursing microloans for daily-needs producers posts hiking demands for this-type of loans.
Download full report HERE.