Indonesia's loan growth slows to 9.6% y-o-y in Jan

[JAKARTA] Outstanding loans by Indonesian banks in January grew 9.6 per cent from a year earlier, decelerating from the 10.5 per cent annual expansion in December, Bank Indonesia (BI) said on Thursday.

The central bank earlier cut its benchmark interest rate by 25 basis points to 6.75 per cent, its third rate cut this year.

Previously, BI had also lowered banks' reserve requirement ratio twice during its monetary easing cycle, providing banks with 52 trillion rupiah (S$5.41 billion) of fresh liquidity.

The central bank expects annual loan growth to rise to 12-14 per cent at year-end.

REUTERS