Indonesia’s central bank said it will use the seven-day reverse repo rate as its benchmark policy instrument to help spur lending and support growth in Southeast Asia’s biggest economy.
The new rate — which is the interest the central bank pays to borrow from commercial lenders — will replace the 12-month reference rate from Aug. 19, Bank Indonesia said in a statement on Friday. The reverse repo rate is currently at 5.5 percent.
Central banks from Japan to Europe are seeking more ways to stimulate their economies and protect against global shocks. The Monetary Authority of Singapore on Thursday unexpectedly eased its policy stance as economic growth ground to a halt. Read more