Indonesia to use new policy benchmark

Jakarta

INDONESIA'S central bank announced it will use the seven-day reverse repurchase rate as its benchmark policy rate, starting Aug 19, in a bid to better guide market rates. The new policy would mean Bank Indonesia sells securities with an agreement to buy them back within a seven-day period.

Bank Indonesia (BI) governor Agus Martowardojo said on Friday that the change will help deepen the country's inter-bank market and guide the money market rates from overnight to 12-month tenure.