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Indonesia c.bank cuts 2017 loan growth forecast, keeps economic outlook
August 22, 2017 / 12:01 PM / a month ago

Indonesia c.bank cuts 2017 loan growth forecast, keeps economic outlook

JAKARTA, Aug 22 (Reuters) - Indonesia’s central bank cut its outlook for 2017 loan growth by banks to 8-10 percent from an initial forecast of 10-12 percent after weak lending growth in June.

In June, loan growth fell to 7.7 percent from a year earlier, the weakest expansion in eight months.

Bank Indonesia on Tuesday cut its benchmark rate by 25 basis points to 4.50 percent to support credit and economic growth. It sees loan growth rising to 10-12 percent next year.

Although economic growth in the second quarter disappointed at 5.01 percent, the cental bank maintained its outlook for 2017 full-year growth at 5.0-5.4 percent, and 2018 expansion of 5.1-5.5 percent. (Reporting by Nilufar Rizki, Hidayat Setiaji, Gayatri Suroyo and Fransiska Nangoy; Editing by Richard Borsuk)

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