VIVAnews - Board of Governors of Bank of Indonesia's meeting cut the benchmark interest rate (BI Rate) by 25 basis points to 5.75 percent. Earlier, BI maintained its BI Rate at 6 percent as of November 2011.
BI said in a press release that the policy was taken to boost Indonesia's economy following the global crisis. BI will monitor the risks of global economy and the impact of government policy in the energy sector, by implementing a mix of monetary and macro policies in managing the overall macro economy.
Lower BI Rate will lead to overnight interest rate by 25 points, the lowest limit for overnight deposit facility of 3.75 percent and overnight loan facility limit of 6.75 percent.
BI's Board of Governors monitors the decline in global economy as the European debt crisis stays on. Estimation has it that global economic growth in 2012 would hit 3.3 percent.
BI expected the economic growth during the first trimester of 2012 would be 6.5 percent.
