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Indonesia's May loan growth steady at 10.4% year-on-year

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Indonesia's year-on-year loan growth in May was 10.4 per cent, the same pace as April's, the central bank said on Tuesday.

[JAKARTA] Indonesia's year-on-year loan growth in May was 10.4 per cent, the same pace as April's, the central bank said on Tuesday.

Despite a slowdown in the economy, Bank Indonesia refrained from aiding growth with an interest rate cut at its policy meeting on Tuesday. It kept its key policy rate at 7.50 per cent, unchanged since February.

But earlier this month, the central bank eased lending rules in an effort to stimulate credit expansion.

The central bank sees loan growth at 11-13 per cent this year.

Meanwhile, broad money supply (M2) rose 13.4 per cent year-on-year in May compared with 14.9 per cent in April.

REUTERS