Indonesian govt says Bank Indonesia to review steps to lower policy rate to 4-5%

[JAKARTA] Indonesia's chief economic minister Darmin Nasution said he has asked the central bank to review steps to lower the monetary policy rate to 4-5 per cent as part of measures to drive down banks' lending rates.

Mr Nasution did not specify which policy rate he wanted to bring down.

Bank Indonesia's current benchmark interest rate stands at 7 per cent, after two cuts in January and February by 50 basis points in total.

The government wants banks' lending rates to companies to be as low as 9 per cent on average by year end.

REUTERS