Bankers Hope for BI Rate Cut
18 June 2015 13:40 WIB
TEMPO.CO, Jakarta – Bankers are hoping that Bank Indonesia would lower its key rate to adjust with loosening liquidity in financial markets. Today the central bank is holding its board of governors' meeting, and the industry is hoping that it would result in a BI Rate cut.
The cut is also expected to allow for lower credit interest rates, says Bank Windu Kentjana International president director Luianto Sudarmana.
Meanwhile, Morgan Stanley analysts Deyi Tan, Arthur J. Carvalho, Zhixiang Su, Ju Yu Lee, and Thiago d Machad are saying that BI has enough fiscal space to lower interest rates, seeing how Indonesia's macroeconomy is showing improvements.
"We see that the BI Rate has a shot of going down by 50-75 bps," the analysts wrote in their research report as Bisnis Indonesia reported.
BISNIS.COM | RR