TEMPO.CO, Jakarta-Bank Indonesia's board of governors meeting resulted in the fourth benchmark interest rate (BI Rate) cut. The BI rate is lowered by another 25 bps to 6.5 percent. The new rate is applied starting Friday, June 17, 2016.
BI's director for Monetary and Economic Policies Department, Juda Agung, said the decision took into account the efforts to sustain macroeconomic stability and maintain a rupiah appreciation.
"We also considered the Federal Reserve's decision to cancel raising the US interest rates this June as they announced last night," he said in Jakarta Thursday, June 16.
BI also decided to cut the deposit facility and facility rates by 25 bps each to 4.5 percent and 7.0 percent. The BI 7-day Repo Rate also got a 25-bps cut to 5.25 percent.
The central bank also eased the mortgage terms for loan-to-value (LTV) and financing-to-value (FTV) in the property sector.
"We also raised the bottom cap of the loan-to-financing ratio (LFR) for the minimum statutory reserves (GWM) from 78 percent to 80 percent. The ceiling is kept at 92%," said Tirta Segara, BI spokesman.
DESTRIANITA KUSUMASTUTI | FAIZ NASHRILLAH