Indonesia central bank to adopt new policy benchmark on Aug 19

[JAKARTA] Indonesia's central bank said on Friday it will adopt a new benchmark policy rate starting August 19 to make its monetary policy more effective in guiding money market rates.

The new benchmark is the seven-day reverse repurchase rate, Governor Agus Martowardojo said in a teleconference from Washington DC.

The seven-day reverse repo rate was 5.50 per cent in Bank Indonesia's last auction.

The current benchmark rate is 6.75 per cent and it is not tied directly to the money market.

Mr Martowardojo stressed that the change does not mean Bank Indonesia is changing its monetary stance.

REUTERS