August 22, 2017 / 11:48 AM / 10 months ago

Indonesia's cuts key rates for first time since October

    JAKARTA, Aug 22 (Reuters) - Indonesia's central bank on
Tuesday unexpectedly cut its benchmark interest rate for the
first time since October, in a bid to boost disappointing
economic growth. 
    Bank Indonesia (BI) cut the 7-day reverse repurchase rate
 by 25 basis points to 4.50 percent.
     All but one of 20 economists surveyed by Reuters had
expected a hold.
    The other policy rates, the deposit facility
and lending facility, were both cut by 25 basis
points to 3.75 percent and 5.25 percent respectively.
    Last year, BI slashed its benchmark six times, by a total of
150 basis points, and eased some lending rules in a bid to help
speed up economic growth. 
    In spite of those easing measures, lending has grown at a
significantly slower pace than the central bank wants, and the
economic growth rate has remained around 5 percent instead of
nearing the 7 percent level President Joko Widodo targetted.

 Announcement     Rate
   22-Aug-2017      4.50
   20-Jul-2017      4.75
   15-Jun-2017      4.75
   18-May-2017      4.75
   20-Apr-2017      4.75
   16-Mar-2017      4.75
   16-Feb-2017      4.75
   19-Jan-2017      4.75
   15-Dec-2016      4.75
   17-Nov-2016      4.75
   20-Oct-2016      4.75
   22-Sep-2016         5
 (Reporting by Nilufar Rizki, Hidayat Setiaji, Gayatri Suroyo
and Fransiska Nangoy; Editing by Richard Borsuk)
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